My mother-in-law with dementia spent all of 2012 living in assisted-living facilities after receiving her dementia diagnosis in November 2011. My wife had POA and control over her mom's affairs and we live nearby. MIL's house sat empty all throughout 2012 while we slowly cleaned it out and prepped it for sale. All of MIL's mail was forwarded to our house; she receives no mail at her assisted-living residence. So, how do we handle the issue of her house on her 2012 taxes? She technically owned the house all year, we kept her up to date on the property taxes, insurance, etc., but she did not physically live in the house at all in 2012. The assisted-living facility where she lives now is in the same city as her house, only about a maile and a half away. So, how do we handle issues on her taxes this year related to where she lived?