Then it's not an inheritance. It's a gift, and if the gift exceeded $14K in the year it was given, it's subject to the gift tax. I have no doubt the property was worth well more than $14K when it was given to you. Paying the gift tax is the responsibility of the giver, and not the receiver. The receiver reports nothing. I would HIGHLY SUGGEST you NOT USE TURBOTAX this year, and instead, pay a CPA to sort this out for you, since your mother has passed. Her estate is responsible for the gift tax. If you just ignore this, it will bite you.
When you report the sale of the property, your cost basis will be the FMV of the property at the time it was deeded to you. If you sold at a gain, you will pay taxes on the gain only. However, your initial acquisition of the property will raise flags at the IRS sooner or later. When it does (note I said "when" not "if") then the IRS can do what is called "clawback" where they can take back in to your mother's estate, from those that acquired it, whatever amount is necessary to pay the gift taxes, along with all the fines and penalties. So I urge you - consult with a CPA this year that you can hold legally liable and financially culpable for the advice and assistance they give you. You DO NOT have that protection in this public user-to-user form.
Also, others are going to see this thread and throw in their two cents. Follow their advice (including mine) AT YOUR OWN RISK AND PERIL!
