First the real estate agent you just used should be able to give you an evaluation to use for the DOD basis however I have always used the sale price if sold "close" to the DOD as that is the actual price a willing buyer is willing to pay. Add the closing costs to that basis then you will have a loss in the amount of the closing costs to pass thru to the beneficiaries. I have never seen an IRS letter on cost basis in the 30+ years I have been in business but keep all the paperwork just in case you do get one.
