How is the amount of tax on a sold inherited propertycalculated if the home sold for less than $100,000?

You will report the sale on schedule D (Form 1040). Your cost basis is the fair market value of the house on the day of inheritance.
Read: Your U.S. Tax Return: Tax on Inheritances (http://taxipay.blogspot.com/2008/02/tax-on-inheritances.html)