No you don't report that on your tax return. You keep the records to continue to track your cost basis in the property until you sell it. It begins with your inherited value at 50% and then the added investment you made in purchasing the other half (add the $10,000 to your share of inherited value). If you invest any other money for capital improvements you continue to add those expenses to your cost basis.
Your sister would have to report the sale of her half of the house on her tax return.
Note: If your name was on the deed prior to inheritance there is a different cost basis for you.
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