My 89-year-old father sold his house in 2022 and moved into assisted living. Does the sale of his house create a taxable event for him? He built the house for $100,000 in 2000. He sold the house for $360,000 in 2022. The house he sold is located near Houston, TX.The assisted living facility where he now lives is in the vicinity of El Paso, TX. His only regular income is social security, which amounts to approximately $22,000 annually.

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stmary53

Level 2

Question

Elderly father sold his house...

Forum|Forum|3 years ago
November 16, 2022
3 replies
42 views

My 89-year-old father sold his house in 2022 and moved into assisted living. Does the sale of his house create a taxable event for him? He built the house for $100,000 in 2000. He sold the house for $360,000 in 2022. The house he sold is located near Houston, TX.The assisted living facility where he now lives is in the vicinity of El Paso, TX. His only regular income is social security, which amounts to approximately $22,000 annually.

cajacks1

Level 4

Hello! Since your father lived in the home for more than 2 years, he can exclude up to $250,000 of the gain from the sale of his home! That means that only 10,000 (360,000 sale price-100,000 cost) will be taxable.

https://www.irs.gov/taxtopics/tc701

stmary53Author

Level 2

Thanks for your reply. I was thinking the same thing. Should I be confident using TurboTax to file his taxes this year?

R-SchuleCPA

Level 5

The rules are complex, please see link below for more information. But it appears that your father, if single, would qualify to exclude up to $250,000 of gain from sale of primary residence. Please see link to confirm.

Exclusion of gain from sale of primary residence

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