My moms will my brother has POA. We are selling her house. Will it states the proceeds are to be divided between the 2 of us. Do we pay taxes at the time of the sale or?

[yankees18]

My mother has been moved to a nursing facility.  We are selling her house and in her Will it states my brother and I are to split the proceeds. When do I pay taxes on my half of the proceeds?

[ColeenD3]

If you sell it in 2021, you will include it on your 2021 tax return, next year.

[Critter-3]

Wait a second ... if mom is still alive then the WILL is not enforce.  If the home is still in her name then she is selling the home and the sale goes on her tax return if it is taxable.  PLEASE seek out local tax professionals to discuss all the possible implications especially if the home is in a trust.  

[Carl]

I suggest you talk with a lawyer that is knowledgeable in estates, trusts, and wills. Generally, a will does not come into play until the person has passed away. (There are exceptions) So if the home is sold before she passes, you may risk having more than tax consequences to deal with.

On the tax front, if the property is sold before she passes and before the property is passed to you, then the gain is figured on the original cost basis established by your mother's ownership, and your mother will pay taxes due on the gain (if any taxes are in fact due.)

If the property is sold after it's put in her estate (which is generally not established until after she passes), or after the property is passed to the named beneficiary(s) in the will, then the step-up in cost basis will reduce the taxable gain on the sale - sometimes quite significantly and potentially to zero. If the property is sold by the estate, then it's perfectly possible there will be no tax on the gain - depending on to many factors to cover here.

Please talk with a lawyer on this, before you make any moves here that you may regret later. You need to make "informed" decisions on what's best for your present situation.