there would be a further complication if the property was converted or used as a rental after passing to the heirs. further an installment sale, where proceeds are received in more than one tax year, needs to be reported on form 6252. There is the option to forgo the installment sale reporting, the entire gain is recognized in the year of sale, so that only the interest income needs to be reported each year.
also was a 1099-S issued and if so in whose name/SSN
do the siblings know they have to report their share?
as mentioned by @NCperson the basis is FMV at date of death and depreciation recapture if applicable.
