We helped our daughter purchase a 4-bedroom house (parents & daughter on deed) which she then rented with three other people to cover the mortage and house expenses. She now wants to downsize, so the roommates moved out 12/31/23, turning the rental home into a primary residence for her and her sister. It is currently on the market and once sold, she will purchase a 2-bedroom condo with proceeds from the sale.
How do we best handle the sale? What documentation is required for our 2024 taxes? Do we need to pay capital gains if putting all proceeds into the next residence? If so, is that at time of sale or when file 2024 taxes? Thank you.
