Q. How do I show my portion of capital gains on sale of inherited house with three other heirs?
A. Manually. You calculate your share of the sale amount and cost basis to report your share of the capital gain (or loss). If you are the one who received the 1099-S, for the full amount, then you report the full sale amount and show an adjustment for the amounts of gain attributable to the other heirs. The TurboTax interview handles this.
Q. Basis of house also in question since house was held for 38 years?
A. The cost basis is the fair market value (FMV) on the decedent's date of dearth (DOD). It doesn't matter what he paid for it 38 years ago. The cost basis "steps up" to the FMV on the DOD.
