- quote -

You did not sell a home, your parents sold a home. I'm not
even going to get into the claiming of the mortgage and
stuff, but if it was sold more than 3 years (to the DATE)
since they have moved out, the income is 100% taxable to
THEM and they will have to deal with it. If it has been
less than 3 years, they may be able to claim an exclusion.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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- quote -

It depends! This is a matter of facts and circumstances so
you really need to explain all to a local tax professional.

While I have empathy for anyone attempting to minimize
taxes, what you have is a creature of after-the-fact tax
planning. And after-the-fact tax is almost always bad
news.

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Hello everyone,

I am looking for some advice. I have somewhat of a wierd
situation that I am looking to figure out.

My parents bought a home 8 years ago and divorced about 3
years ago at which time my wife and I moved into the home
they bought and payed all the morgage payments etc. My
parents decided to give us all equity in the home as a gift,
so after 3 years we decided it was time to move. (Morgage,
deed and everything is still in their name)

We put our my parents house up for sale Friday and it sold
Saturday and we will be recieving about $41,000.00 in
equity. Can this money be somehow gifted over to us to avoid
taxes? We are looking to use about 20,000 for various debt
etc but would like to put the additionial 20,000 in a money
market account or savings account.

In this situation is there anyway to avoid paying taxes on
that amount for both my parents and I?

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