@bdm0186
@bdm0186 wrote:
If the check is written to my aunt on the sale of the property . . .
I'm not sure you can do that. If you are a part owner, your share of the proceeds probably has to be paid to you. Your lawyer can tell you for sure.
@bdm0186 wrote:
can she claim the entire amount on her taxes and be taxed in the 0% bracket as she's retired and her taxable income is under 38,000 for 2021 tax year?
The tax on long-term capital gain doesn't work that way. The gain from the sale is included in her taxable income. Her other income, plus the gain, will use up the 0% bracket, and the rest of the gain will go into the 15% bracket.
@bdm0186 wrote:
Is an IRA also an option to avoid Capital Gains tax?
An IRA contribution has to be based on "compensation." Capital gain is not compensation.
Take the advice of the other people who replied and consult a local attorney and a local tax professional.
