Do I need to add my portion of this sale to my yearly salary?

Maybe. What did you sell it for and what was the Fair market value at the time of death?

House sold at $181,500 with $5,000 back to buyer at closing. The FMV at the time of my mother's death was $174,700.00. I have at least $15,000.00 of expenses.

Then you have sold at a loss.

No taxes are due, but the sale MUST be reported on your 2012 tax return.

The loss is NOT deductible.