Unless the seller lived in the house for 2 out of the past 5 years, there wouldnt be any "exclusion" (assuming youre referring to IRC121), but they would get the stepped up basis at the date of death.

Sale of real estate is input using Schedule D, Im not familiar with Basic, but Sch D should be your starting point.

You can use date of death for date acquired, but I just enter "inherited" and it helps assure the sale is reported as long-term even if the property is sold shortly after death.  

Just like a sale of stock.
Long term since inherited. Get the basis for the estate valuation plus any improvement since inherited. Expense of sale from the sales escrow.