I am assuming you did not live in the house.
Your half prior to death will be what you paid for it. If she gave you half interest, then it is what her cost was. So say she paid $10K and did improvements over many years totally $20K this is now $30K and then your 1/2 would be $15K for the 50% of the home owned prior to death.
Now for the remaining 50% after death, this is the Fair Market Value at death. Does not matter what was paid for it.
So let us say it is worth $100K at death now your 50% inherited in now $50K
So in my example, you have now $65K basis in the home.
You need to keep track of all selling costs (commissions, staging, fixing up costs) and the sales price.
Note: Inherited will automatically qualify for Long-term capital gain.
You will report as follows:
To enter your Investments sold
Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on
Scroll down to Investments
On Stocks, Bonds, Other, click the start or update button
