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Hi there. You won't owe any taxes so you need not worry. When you inherited the house, the basis of the house was automatically adjusted to its fair market value as of the date of death. So, then when it was sold for that amount, there would be no gain and thus no tax. But, the title company does issue 1099's to report the proceeds received so this is likely the cause of this inquiry. What you will need to do is amend your return to report the sale (otherwise the government treats the basis as zero and treats all the proceeds as gain). On the return, you report the sale on Schedule D and Form 8949 and enter the basis and the sale proceeds (less closing costs) which will indicate there was no gain the sale and thus no tax. :)
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