Good morning--
I am trying to figure out how much I need set aside at tax time for an capitol gains I may incur. Here is the scenario:
In 2017 my grandparents bought my now-husband and I a home. They took out the loan and were the names on the mortgage. We moved in and it was our only primary residence until 2021.
In June of 2020 we deeded ourselves onto title and deeded them off, then refinanced the mortgage loan into solely our names.
In May of 2021 we sold the home.
The house was our primary residence from July of 2017 to May of 2021, but we officially owned the home from June of 2020 to May of 2021. Prior to owning, we had the property taxes homesteaded in our names as a relative-homestead and we made various improvements to the property. We had the home appraised when we refinanced into our name (June 2020) and it was valued only 10k less than what we sold it for less than a year later in May of 2021.
What are we looking at for capitol gains? Are we safe because of how long we lived in the house? Do the improvements we made prior to owning the home count toward anything?
