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.
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.
If you sell at a loss, the loss is not deductible, because it is "personal use" property.
@kuglerk - can you claim Mom as a dependent? At least that way you may be able to deduct her medical expenses
Found what you need?Start my taxes
Already have an account? Sign In(4.6/5 | 291,310 reviews)
Still have questions?
Or browse the Forums