It depends. According to irs.gov, When someone dies, their assets become property of their estate. Any income Yes, those assets generate is also part of the estate and may trigger the requirement to file an estate income tax return. Examples of assets that would generate income to the decedent’s estate include savings accounts, CDs, stocks, bonds, mutual funds and rental property. IRS Form 1041, U.S. Income Tax Return for Estates and Trusts, is required if the estate generates more than $600 in annual gross income.
Yes, the valuation done at the time of your father's death is sufficient to use as a cost basis. As for the cost basis of the property being sold, In this case, you will compare the cost basis of similar properties in your portfolio and make an educated guess on what the cost basis.
Since you are using the cost basis for the properties in 2013, you will not need to get appraisals. You will use either the value of the property on the date of the original owner's death, or a date selected by the executor no later this six months after the death.
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