To keep from paying too much taxes on the sale of mom's house, where can we put the money to still have access to it but not be highly taxed on it so she can use it to pay for her now assisted living home expenses.

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Bubba, if you really want to avoid paying cap gains taxes, you'll need to calculate the home basis, plus allowable capital improvements, then sell for a figure that doesn't exceed the threshold that triggers cap gains assessment. It isn't necessarily an easy assessment; a realtor might be able to help or guide you when you list the house. But a tax accountant would be the best source.

But first review the IRS publications CMagnum referenced; the house may not even be subject to gains because of its value, if it doesn't meet the threshold.

This is a site at which you can guesstimate whether or not cap gains taxes would be assessed:

Where you put the funds and what financial products you choose might be a function of any estimate of when she might need the funds for assisted living, as some financial products have early withdrawal penalties.

I would discuss it with your banker and/or your broker, if you have them. For example, savings accounts pay nominal interest but are readily available. IRAs if she has them likely already are in the required minimum distribution stage, and additional withdrawals might be taxable, depending on how the IRAs were initially funded.

What money you'd need for AL also depends on what SS and/or other retirement income she receives now, the cost of AL, her health and how much support she needs in AL. Unfortunately, there are a lot of factors involved.
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You need to balance security with the need to do the best for your mom, and that includes making her money work for her. I wouldn't park a substantial amount in a savings account, I have invested part of my mom's money in a relatively safe money market fund and the remainder in an insurance company annuity that pays a monthly income. As for shielding her money from the tax man, you would have to crunch the numbers to see what works best in her situation.
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It would be wise to use all of the profit for your mother's care and document it in case she ever has to apply for medicaid.
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From what I read on a turbo tax article online about the "tax aspects of home ownership:selling a home," this is apparently not an issue if the profit is not more than $250,000. Below are quotes this article that was updated for 2014.

"Most home sellers don’t even have to report the transaction to the IRS. But if you’re one of the exceptions, knowing the rules will help you hold down your tax bill."

"It depends on how long you owned and lived in the home before the sale and how much profit you made. If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free.

If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" this much otherwise taxable profit from your taxable income. (If you sold for a loss, though, you can't take a deduction for that loss.)"

"If your profit exceeds the $250,000 or $500,000 limit, the excess is reported as a capital gain on Schedule D."

"For information on figuring out whether you have a gain or loss on the sale of your home, see IRS Tax Topic 703: Basis of Assets. For general information on the sale of your home, see IRS Publication 523: Selling Your Home, and Tax Topic 701: Sale of Your Home."

If you have a CPA to do your mother's taxes, they can figure this out for her.
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