Hi, I am selling a house in Florida because my Mother was transferred to Assisted Living. Does anyone know if we are required to pay capital gains tax on the sale of the home? Can we just take the money and put it into her account to pay for her care?
Thank you!
You can also use your search engine to give you an idea of what you will be dealing with in State and Federal taxes. Internet is full of advice, but still check with the person who ordinarily does your Mom's taxes for her before the sale to get suggestions.
https://www.investopedia.com/ask/answers/06/capitalgainhomesale.asp
Thanks for your info! Her house should be exempt from capital gains, which is what I thought, but was looking for some anecdotal advice on how other people handled this transition.
https://www.investopedia.com/ask/answers/06/capitalgainhomesale.asp
The answer is, it depends.
Most homeowners can exclude the firsr $250,000. of profit over the cost basis of the home, which is the original cost plus any capital improvements that have been made.