First thing I notice here is your statement that "WE" received an inheritance. Who is "we"? You only? That's what I'm assuming from this point on. If my assumption is wrong, you need to tell us.
If this was an inheritance received due to the passing of the owner, with few exceptions an inheritance is not taxable or reportable on any tax return. Ever. An example of an exception to that would be if you inherited a 401(k) of the deceased. Any withdrawals made from that 401(k) either by you or by the estate of the deceased would be taxable income to the entity or person that withdrew it. If the deceased would have been of retirement age had they lived at the time of withdrawal, then no early withdrawal penalties will be assessed. But taxes *will* be paid on it.
If you inherited a house that was not used as a rental property or other business use, then you have nothing to report on the inheritance of that property. But it is important to know what the FMV of that property is on the date of the passing of the deceased, and not the date you inherited it or whatever. That FMV will be your cost basis which you will require when you sell the property.
If you sell for less than the cost basis, then you have no taxable gain and nothing to report still. (unless you receive a 1099-S reporting proceeds paid to you.) If you sell for more than the FMV of the property, then you will pay taxes on the gain - which is the total amount you receive in excess of the FMV of the property.
As for gifting a portion to your brother. If you gift anyone more than $14K in a tax year, then the giver is required to file IRS Form 709 - Gift Tax Return. Now the name of that form is a misnomer. There is no tax assessed. Since you have a lifetime limit of $5.2M that you can give to others through gifting or inheritance in your own will, all filing that form does is report to the IRS the amount you have gifted to the individual, and that amount is subtracted from your lifetime limit of $5.2M. There will be no tax paid on it at all though.
Note that the recipient of a gift is not required to report anything to anyone. Only the giver of the gift is required to file form 709 for gifts given in excess of $14K in any one tax year. But like I said earlier, the giver will not be paying any taxes on it.
Finally, TurboTax does not do the form 709. You'll have to get t hat form yourself from the IRS website at https://www.irs.gov/pub/irs-pdf/f709.pdf then print it, fill it out and mail it to the IRS.
