jritchie
Level 3

Costs to get the inherited home ready for sale increase the basis of the home the daughter held for this time frame.  At the death of her parents, the Fair Market Value of the Property became her starting basis.  Add to that any costs she paid (other than travel),  to get it ready to sell, such as repairs, upgrades, etc to the home.  When she sells this will provide a higher basis, thus tax she pays on the gain will be lower.   

Traveling from her home to her parents is not a cost that would increase her basis.  She will report the sale on SCH D and Form 8949.