My mother-in-law (husband is head of household) lives in a home that we own. As she ages, she now needs to move in with us. We need to make updates to an ADU in our home for her and need to sell the home she is in. Due to market conditions, we assume capital gains. Any way to get any type of relief on the capital gains tax if we are putting all the profits into upgrades for her? I’m not optimistic, and I don’t think a 1031 exchange will work, but wondering if you have any ideas.
