topic Exclusions in Deductions & credits

Exclusions

kuglerk — Tue, 10 Mar 2026 05:19:06 GMT

Greetings,

Four years ago we purchased a second home for my mom to live in. It was rented to her below fair market value, therefore we never claimed rent or depreciation since we've owned it. She is now disabled and we need to move her close to our primary residence. She will be renting - we are not planning to purchase her another property at this time - as we are unsure of her health. Are there any exclusions to help reduce capital gains on the sale of the home in this case? The funds will be used to help care for her going forward. Thank you in advance for any feedback.

Re: Exclusions

Critter-3 — Tue, 07 Jun 2022 00:21:33 GMT

Nope ... you are simply selling a second home that you have been letting family live in so you will pay taxes on the long term cap gains no matter what the proceeds will eventually be used for.

Re: Exclusions

Hal_Al — Tue, 07 Jun 2022 15:32:33 GMT

If you sell at a loss, the loss is not deductible, because it is "personal use" property.

Re: Exclusions

NCperson — Tue, 07 Jun 2022 15:57:18 GMT

@kuglerk - can you claim Mom as a dependent? At least that way you may be able to deduct her medical expenses

https://www.hrblock.com/tax-center/filing/dependents/claiming-parents-on-taxes/#:~:text=You%20must%20have%20provided%20over,assistance%2C%20and%20other%20government%20assistance.