Hi @cguerrant
I am sorry to here about all of your hardships. There is a lot in play here so I will do my best to answer everything.
If you were renting the house to your daughter, were you claiming the property as rental property for tax purposes? If yes, then you are on the right path. If no, I would consult an attorney about how to fix this with the smallest tax liability.
When you sold the home, if it was listed as rental property, you will have to report it as a capital gain. You are allowed to offset the sale proceeds by adding in sale expenses. If you put work into the house before selling it, these too can be added to the basis of the property to help offset profits.
I do wish you the best of luck and if we can help further, please let me know.
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