Have a Tax Question? Ask a Tax Expert
Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment I am working on a response for you.
You mentioned that you sold stock. Do you know how much of a gain you had on the sale of the stock? Are both bank accounts in your Mother's name? Are they joint accounts?
The risk associated with the account being in your name is ***** ***** would be subject to your creditors if something happened (accident, debts, a divorce). Do you have any estimate of the amount of gain. Do you know how much of the $4,000 monthly payment is applied to medical care? If you consider her medical expenses along with the small pension and Social Security income of $1,400 monthly, and the gains from stock transactions the amount of taxes will be minimal. As long as your mother's taxable income is below $37,650 the capital gains will not be taxed. I did a quick estimate assuming a capital gain amount of $35,000 and the pension of $1,400 and medical expenses of $12,000. The federal tax liability came to just under $700.
You would be taxed on any earnings in the account. So if the account earns interest it would be reported to your social security number.
No, you would be able to show that the money came from your mother's home and the stock sales. The IRS would not consider this to be income.
It was my pleasure. Please let me know if you have any other questions.
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