My mother did own and live in the house in Wisconsin as her principal residence for at least two of the last five years before the sale. The home's sale price was $126,000. My mother and her children split the proceeds because the children were named on life estate quit claim deeds. My mother's portion/share of the sale proceeds was a little under $47,000. If the threshold is $250,000 profit, then, as I understand your reply, my mother would not be required to file a return solely based on the sale.
