Capital Gain Tax

Forum|Forum|2 years ago
April 11, 2024
1 reply
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Hello. I appreciate your efforts.

I purchased a home in 1989, so my parents could live close to me to help care for my two young children, my parents are the only,people who resided there since I purchased the home. Now, they have both passed, and I am ready to sell the 1929’s model house. I\since I never lived in the home how will this impact my tax burden? And, how do I habdle that next year?

Thank you very much got your assistance. It is greatly appreciated.

sincerely,

Rebecca Eubanks

Capital Gains

Mike9241

you are not entitled to a home sale exclusion because you never lived there nor are you entitled to a step-up in tax basis upon their deaths because you owned the home (I assume title was in your name) .

I assume they paid no rent and you did not take depreciation on the property.

you will have a capital gain equal to the sales price less your selling expenses less your tax basis in the property.

Your tax basis is what you paid originally plus certain closing costs at that time plus the cost of any major improvements you paid for.