Just use Sch D, Asset Sales Worksheet, like a stock sale,  in Gross Proceeds enter the 1099S amount, in the Basis box enter the FMV at the date of death and add any closing costs to it (I usually hit the little button to make sub entries and break out the FMV and costs in case I want to see whats in the basis), when you enter the date acquired, type INHERITED and it will automatically make it long term.