You should each have a copy of the appraisal and the closing papers from the sale to keep for your records. You will not need to provide this information with your tax return unless the IRS requests it from you later.
When entering the sale of the inherited property as part of your return it will go in the Investment Income section and will be reported as a capital loss. Since the property was not your personal residence, the loss can be claimed against any capital gains you report for 2025, or the loss can be claimed over a number of years until it has been used in its entirety. You can claim up to $3000 loss per year, assuming there are no gains to be offset.
My condolences for your loss.
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