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Chea Romine
Chea Romine, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 197
Experience:  CPA, Managing Partner of medium sized CPA firm specializing in all areas of tax and accounting.
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My mothers home was placed in my brother and my name several

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My mothers home was placed in my brother and my name several years ago. She lived there until spring of 2012 and was placed in a nursing home due to severe bone degeneration. The
home was sold in the summer of 2012. My brother is 69 and I am 64.

What will our capital tax situation be 2012?

Chea Romine :

The sale will be treated as a long term capital gain. You will use the basis that your mother had in the home, which means what she paid for the home plus any capital improvements. You will take the sale price minus closing costs minus your basis and that will determine your taxable gain. You will claim one half of the gain and your brother will claim the other half. The federal tax rate on this gain will most likely be 15% plus your state taxes.

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