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The house is not part of the estate because it was transferred in ownership to the 3 of you.
Each of you will report your portion of the sell on your individual returns.
Your sister that lives in the house may be able to use IRC 121 to exclude gain (up to $250,000 if single ) as long as she owned and lived there for 2 full years prior to the sale date.
Your taxable amount will be the gain. This is the difference in Basis and Sale price.
Your basis is the fair market value on the date your mother passed away. This is called stepped up basis.
If you have no gain then there will be no tax but you still must report.
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