Have a Tax Question? Ask a Tax Expert
Hello and thanks you for using Just Answer. If your mother-in-law owned the home when the home was sold no capital gain is due on the sale if she lived in the home 2 out of the five years prior to the sale. She would be able to exclude up to $250,000 gain from the sale of the home.
Any funds your wife and her 5 siblings received from the sale would be a gift and any taxes due on a gift is paid by the donor.
Who own the home when the home was sold?
Thanks - I will try to get the exact numbers and do the calculation like that on Schedule D, I guess.
Looks like it would have been way better to have had her sell the house and then give us the proceeds.
Thanks you for using Just Answer.