Deductions & credits

Speak with a local Real estate Attorney. Real Estate law is governed by the State. 

NORMALLY obtaining a house through a "Life Estate" or death deed is the same as inheriting the home. 

If that is the case, you would only claim a gain if the property increased in value from the date of death until it was sold. 

1. In TurboTax enter under 

Personal Income

Less Common Income

Sale of Home (gain or loss)

2. Yes, enter the 1099-S (which already reports only half) and then enter your HALF of the FMV on the date of passing

3. Yes, enter half of the closing costs

As inherited property, there should be no gain and no loss if the property was sold at the same value as the date it was inherited.