Thank you for your quick response and explanation. Just one question on the proceeds paid to my mother ($15,000). Your answer refers to this as a gift, but it was an amount the attorneys handling the sale of the townhouse said was due to her based on her life tenancy rights and calculated using IRS actuary tables based on her age. The money was paid directly to her and was used to pay for her nursing facility care. From your response, it seems I must include the $15,000 as part of the proceeds I received, though, again, it was owed and paid directly to my mother. In effect, I would be responsible for paying capital gains tax (on my tax return) on the $15,000 proceeds paid to her, is that correct? Thanks once again.
