Hi, my parents, my husband and I co-own a property, this property is my parents primary home.
My husband and I own a property of our own which is our primary home and My parents do not own any other home besides the one being discussed.
The co-own property is being sold but my parents are buying another home which will replace the one they are currently living in. Most of the proceeds (with the exception of about $100,000 are being re-invested in the the new property.
Will my husband and I need to pay taxes on this.
We were asked to complete the TAX form 593 "Real Estate Withholding Tax Statement" can I select #1 as "The property qualifies as the seller's (or decedent's, if sold by the decedent's estate or trust) principal residence under IRS code Secition 121?
