Some context and facts related to my question:
- The home I sold is my parents house but ownership was transferred to me sometime in 2015 with my parent’s retaining lifetime rights.
- my last surviving parent died in August 2023.
- my brother lived in the home, rent free, from August 2023 until January 2024.
- I sold my primary residence in June 2022.
- I lived in an RV from June 2022 until February 2024, when I moved into my parents house.
- I was building a house over 100 miles away while I lived in my parents house.
- When my new house was finished, I sold my parents home (in December 2024) and moved into my new house.
My question is do I need to pay capital gains tax on the sale of my parent’s house? I only lived in the house 10 months as my primary residence. Does my last surviving parent’s death qualify as a special circumstance as outlined in the IRS quidelines?
