Question

Capital Gains on Sale of parents main home where I hold a percentage of ownership

Forum|Forum|6 years ago
December 30, 2019
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In 2009 I obtained two-thirds interest in my mother's home via a Deed Of Gift from another relative. We had to sale the home for health reasons as my mother could no longer live independently...using the proceeds to offset assisted living. Since I own 2/3 interest, am I correct in assuming that my portion of the sale is still subject to capital gains taxes as an "investment" income since this was not "my main home", but my mothers? I know there is a capital gain exemption (at least partial) if sale of home was due to health reasons for the occupant, but does this apply if the sale is not my own "main home", but the home where my dependent mother actually lived (with her 1/3 interest)?

S

smarttees

Read IRS Pub 523 as there's a health related move exception in there....the problem is you own 2/3 of the house not your mother......you don't live there and aren't selling it to move closer to assist with her health care....so you're subject to capital gains taxes.