HOUSE GIFTED TO ME IN 2012 SOLD IT IN 2016 TAXES

[jsarniejr]

Jurisdiction

Massachusetts

I had a house gifted to me by my dad in 2012. My dad lived in it until 2013 and passed that year I sold it in 2016 . 2 basic questions remain about the proceeds. 1, Do I hold the tax liability on the proceeds and 2,How long do I have to do something with the proceeds to avoid being taxes on it if I do hold the tax liability. Thank You

 

[army judge]

I had a house gifted to me by my dad in 2012. My dad lived in it until 2013 and passed that year I sold it in 2016 . 2 basic questions remain about the proceeds. 1, Do I hold the tax liability on the proceeds and 2,How long do I have to do something with the proceeds to avoid being taxes on it if I do hold the tax liability. Thank You

The exact answers you seek relate to your entire financial status, as well as your tax situation globally.

That means you should speak with a CPA or tax attorney for a precise explanation.

You won't get that via the Internet.

You need to hire a professional to give you information applicable to you.

 

[adjusterjack]

Do I hold the tax liability on the proceeds

Yes. You owned it when you sold it.

,How long do I have to do something with the proceeds to avoid being taxes on it if I do hold the tax liability.

Holding the proceeds has nothing to do with the tax liability.

If you lived in the house as your main home for two years prior to sale, then the gain on the sale is exempt.

If it was not your main home prior to the sale you pay capital gains tax on the gain.

Those last two sentences are overly simplified and may vary depending on your circumstances.

Read IRS Publication 523 for complete answers on how to handle the tax.

https://www.irs.gov/pub/irs-pdf/p523.pdf