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Barbara
Barbara, Enrolled Agent
Category: Social Security
Satisfied Customers: 2863
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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My father is in a nursing home my mother is still alive the

Customer Question

my father is in a nursing home my mother is still alive the house is empty because it needs a lot of work which i have been repairing and paying tax's on for years will I have a problem selling the house and can I recover any money spent out of my pocket how much money will social take from sale
Submitted: 2 months ago.
Category: Social Security
Expert:  Barbara replied 2 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

You should speak to your parents about being compensated for the money you have spent on their behalf for the house. Any reimbursement to you will need to be approved by them. They can either instruct the title company/closing agent to deduct the amount from the net sales proceeds and pay it to you OR they can reimburse you themselves after the closing takes place.

"Social" does not take any money from the sale.

There may be capital gains tax due when the house is sold. Capital gains tax will be due on the DIFFERENCE between the basis (what your parents paid for the house) and the sales price. There are other factors to take into consideration such as closing costs, real estate commissions, etc. which get added to the basis. Your parents may qualify for the sale of home exclusion which allows them to exclude up to $500,000 of gain from the sale.

https://www.irs.gov/taxtopics/tc701.html

Please let me know if I can assist you further.

Thank you and best regards,

Barb