Hi, jeanettemcmurtry,
Your question has some of "it depends" to my answer. First, it doesn't matter if you sell the house to your sibling or a third party, you are potentially looking at a gain or loss on sale, assuming you have not owned and lived in the house as your residence for two out of the last five years. If you just acquired the home through inheritance, that rule won't apply to you, but I am unsure how long you held the property before considering selling. This article explains in general about home sales.
If you just inherited the house, and are considering selling, there may not be much gain or loss as you get what is called a "stepped up basis" on the home, typically with the basis stepped up to the fair market value of the inheritance at the date of death (there is an alternate valuation date possible, just as an FYI). This article explains "step up" in basis.
If you and your sibling each own 1/2 the house and sell it, you should receive separate sales information and would separately account in your taxes for your piece of the house (e.g., proceeds and basis split).
Hope this helps.
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Regards,
Karen
TurboTax Expert
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