You paid six siblings $8,571 each right (four when you first received it, then the other two basically had a loan with you and you paid them after you sold it).
Paying six siblings $8,571 each is buying the property for a total of $51,426.
But you are correct that my original response did not include your 1/7th ownership. If the Fair Market Value on the Date of Death was $60,000, then your 1/7th Basis was also $8,571-ish, so your total Basis would be $60,000.
Paying your last two siblings is still part of your Basis (cost), not a sales expense.
If your Basis is $60,000, you enter that as your 'cost'. Then enter the sales price of $265,000, for a gain of $205,000.
