My question is a little complex. My daughter is 100% disabled. I am her representative payee. She was awarded a $150,000 settlement from a rape case. The money was used to buy her a 5 acre piece of property. We built her a home. She raised her daughter there. My daughter is Bi-Polar. That is her disability. My wife an I maintained the house from 1996 until we sold it in 2019. We put in probably well over $200K in maintaining the house and paying all of the utility bills, power, phone upkeep etc.. My daughter had no way of paying all of the bills. So now what I did was have a Quit Deed signed over to me for $1.00. I then proceeded to begin restoring the house to sell it. For the past 7 years my daughter was housed in a group homes. She was completely mentally incapable of taking care of herself. So now I have a 1099-s for a sale price of $350K. Can I recover the boat load of cash and deduct it from the 1099-s so that i do not wind up paying a huge tax bill?
