Because they transferred the condo to you while they were still alive the basis that they had in the condo transferred with it. So your basis in the condo is whatever your in-laws paid for the condo in the first place plus any improvements or renovations that have been made since 1989 that you have receipts for.
You'll enter this in TurboTax as a sale of a home. That's all the way at the bottom of the wages and income section of your federal return in the 'Less Common Income' section. Click start next to sale of a home and enter all of the details about the home including when you purchased it (which is 2005, the date of the quit claim) and the cost basis. Then you'll enter all of the details about the sale including how much you received and any costs related to the sale.
The system will enter it into the necessary forms for you at that point.
@sskochanek
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