Hello All!
I'll keep this brief and straightforward.
In 2020, my wife and I, both military personnel, purchased a house in Washington and We're selling it this March 2024 due to a PCS near st louis due to the military.
My primary concern is regarding my mother's situation: She bought a house in 2021, valued at around $390K, and is now selling it for $450K. To secure the loan, she needed both me and my wife's income, so we are both on the title/loan because if anything happened she wanted us to inherit it.
Once she sells this home, will my wife and I owe taxes on it, given that technically, it's a second home even though my mom lived there throughout?
Also, do we only owe on the 60K difference between purchase and sell price. Thats how i am reading the rule.. but not entirely sure
My mom will be following us and plans to buy a home near us again.
1. Question: Does my wife and i owe taxes on the property?
2. Question: Since my mom is one of the borrowers, she shouldnt have to claim anything different on taxes since its her only home/title?
3. Question: taxes on 60K correct? if it sells at 450K
