@NCperson wrote:
one additional assumption: the sister who lived in the home would also have to satisfy the two year ownership requirement to take advantage of the capital gains exclusion; as long as the home was sold at least two years after Mom passed, this requirement would be satisfied.
Even if the mother passed less than 731 days before the date of the sale, the sister in residence should qualify for a partial exclusion under the unforeseeable events rule (death of someone for whom the home was a residence). That's why I said "up to" $250,000.
