mmraham969
New Member
I'm trying to find tax liability for what--at least to me--seems a fairly unique situation.
My parents sold their home--their only primary residence since 1946--in 2005 and moved to another house, still in Alabama. My sister, acting with Power of Attorney, bought a home for them--paying cash derived from the sale of that property. She executed the deed and had it filed with our father as owner, and she was listed on the deed with Rights of Survivor. Just a few months after moving in, my sister--again using Power of Attorney--took out a first mortgage of approx. $80K.
Both parents had valid wills, very generic, designating each other as sole inheritor of their estates, with my sister and me listed as contingent heirs, each of us to receive half of their estate. As primary caregiver for our parents, my sister and her husband lived in the house with them, and assumed full ownership of the home when both our parents died in 2008--five days apart. Later, pursuant to a negotiated settlement, my sister added me to the deed as half owner of the property.
In October 2013, my sister contacted me and told me she was in financial difficulty and needed to sell her share of the house. We negotiated a deal where I would buy her share of the house. In return, I would pay off the mortgage and give her $10K to help her move and pay debts. I bought the house from her in November, 2012 and re-sold the home in March, 2013. I never lived in the house, I never used it as a rental or income property. I bought it, made repairs necessary to prepare the property for sale. What are tax liabilities of selling a home under these conditions? If there is a tax liability, how do I report it?
Thanks in advance for your help.
My parents sold their home--their only primary residence since 1946--in 2005 and moved to another house, still in Alabama. My sister, acting with Power of Attorney, bought a home for them--paying cash derived from the sale of that property. She executed the deed and had it filed with our father as owner, and she was listed on the deed with Rights of Survivor. Just a few months after moving in, my sister--again using Power of Attorney--took out a first mortgage of approx. $80K.
Both parents had valid wills, very generic, designating each other as sole inheritor of their estates, with my sister and me listed as contingent heirs, each of us to receive half of their estate. As primary caregiver for our parents, my sister and her husband lived in the house with them, and assumed full ownership of the home when both our parents died in 2008--five days apart. Later, pursuant to a negotiated settlement, my sister added me to the deed as half owner of the property.
In October 2013, my sister contacted me and told me she was in financial difficulty and needed to sell her share of the house. We negotiated a deal where I would buy her share of the house. In return, I would pay off the mortgage and give her $10K to help her move and pay debts. I bought the house from her in November, 2012 and re-sold the home in March, 2013. I never lived in the house, I never used it as a rental or income property. I bought it, made repairs necessary to prepare the property for sale. What are tax liabilities of selling a home under these conditions? If there is a tax liability, how do I report it?
Thanks in advance for your help.
