I'm Anne. I've been preparing taxes for 28 years and I'll be happy to help you.
First, let me extend my sympathies on the loss of your Mom (and Dad). It is never easy. I know.
I'm not real sure why the other expert "opted out" , since her answer was correct.
As the expert above stated, you would not need to file a tax return unless the GAIN on the sale of the home was more than $250,000, or she did not meet the requirements to use this exclusion (Please see below:)
If a Form 1099S was issued (which is pretty rare if one is selling their Principle Residence.)
This is NOT the same as the selling price. This is the difference between the $319K selling price, and your Mother's basis in the home. That basis is calculated as follows:
Original purchase price + ALL improvements made during the time your parents owned/ lived in the home (improvements would include things like adding a room, updating a room such as a kitchen , or a bathroom, and would include new appliances, plumbing, etc) Additionally, she would have inherited 1/2 of the Fair Market Value of the home on your father's date of death.
MOST of the time, the net gain at this point is <$250,000
Additionally, the cost of selling the home is also subtracted from the sales price (things like sales commission, legal fees, painting or "sprucing" up a home for selling it, etc)
If all of the above STILL results in a net gain > $250,000, then you would have to file a final tax return for your Mother
As far as CA is concerned, you only need to file a final tax return for your Mom if she would have normally been required to file. Please see below:
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