My father sold his house in December 2017 and moved to assisted living. Must he pay a penalty for that one-time income?

[votaxman45]

My father is 89 yrs., retired and disabled.

[MinhT]

If your father owned and lived in his home for two of the five years before the sale, then up to $250,000 of capital gain is tax-free. If he is married and file a joint return, the tax-free amount doubles to $500,000. The law lets him "exclude" this otherwise taxable profit from his taxable income.

Please read this TurboTax article for more information:

https://turbotax.intuit.com/tax-tips/home-ownership/tax-aspects-of-home-ownership-selling-a-home/L6t...