Follow
Share

it been in the family for over 100 yrs mom and dad brought the property back in 19eighty something she 22 the elvation is around 35 what she did take a loss she sold it to my dad nephew to keep it in family

This question has been closed for answers. Ask a New Question.
I believe there is still a deduction on the books that if a single elder [widowed or not married] sell a house, the accountant can take $250k off of the capital gains, and only the remaining capital gains can be taxed. Hope this law hadn't changed.

Now if Mom's husband had died within the year, then the accountant can take $500k off the of the capital gains. Again, I hope this law hadn't changed.

Any improvements made to the house before it sold, had to be within a certain time frame to be counted as an "expense".

Real estate taxes were already paid at settlement where the keys were handed over to the new buyer. No worry about those taxes. But if the house sold in 2016, the real estate taxes can be written off on your Mom's income taxes.

Selling a house way below market value might come back to bite Mom should she ever need to sign up for Medicaid within the next 5 years. The amount difference could be considered as a "gift".

Financial life can become so complex as we age :[
Helpful Answer (0)
Report

There used to be a law that at 58 and beyond you can sell a home and not pay capital gains. This is only a one time thing. Also, any remodeling or improvements can be deducted from the profit if taxes need to be paid. She needs to see a CPA who knows all the ins and outs.
Helpful Answer (0)
Report

You take the documents to a tax preparer. I'm sure she sold it for more than she paid for it, but she gets to add in capital improvements as part of her basis in the property. I doubt if there is a calculable loss.
Helpful Answer (1)
Report

When my mom sold property I made sure that I had a knowledgeable accountant do her taxes the following year, the peace of mind was well worth the cost.
Helpful Answer (1)
Report

This question has been closed for answers. Ask a New Question.
Subscribe to
Our Newsletter