Can you clarify what you mean by was "worth" ($55K)? Your basis is the fair market value on the date of his death, which is usually pretty close to the amount you sell the property for (The IRS defines fair market value as what a willing buyer would pay). This allows the inheritance to essentially be tax-free. (There is a time value so if there was more time between the death and sale the market could change.)
For “Other increases to home adjusted cost basis,” you would put your half of the cost of the ramp, so $150.
Yes, you would want to divide the selling costs in half as well.
If the fair market value at time of death was $55,000 you would each use $27,500 as the basis- this would leave you with a taxable income of approximately $4,981, but once again please check the fair market value.
@Blueeyez58
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