Hal_Al
Level 15

Deductions & credits

What kind of house was it? A rental would involve depreciation recapture. 

Did he pay tax on the gain in the year it was sold? That is, has the taxable part of the gain already been accounted for?

 

If not, was it his intent to pass the tax obligation to you, both capital gains and mortgage interest.  The insurance payments are not deductible and the real estate tax is only deductible as an itemized deduction.