In 2010, I sold my home in Brooklyn's Park Slope area for approximately $750K. I had brought this house approximately 22 years ago for about $99K. I never lived in the house, but rented out 2 apartments, to my niece and sister for very little rent. In 2007, I decided to renovate the house, which I did so that I could rent the 2nd floor for income
. Unfortunately, the entire rental of the apartment went to pay the mortgages that I had taken for the reparations. My sister who was ill remained living there and I charged her only $300 per month for rent, which she paid intermittently. In 2010 she was diagnosed with cancer, and the tenant who was paying for the mortgage moved out. I made the decision to sell the house. In 2/11, I sold the house for $799.00, and from that money I paid the mortgage and brought an apartment for my sister. I was now debt free. I don't recall being told by my attorney that I would have to pay a capital gain
. I live in a Mitchell Lama apartment, I'm 70 years old, I've returned to work, my yearly income is approximately $100K with pension
/ss and my salary. I went to my accountant who had gotten me an extension
on my taxes
yesterday and he told me i would have to pay $600,000 in taxes, which of course is impossible. My question is should I consult a tax lawyer and have them accompany me to the IRS
to be put on a payment plan. or should i meet with them without a lawyer and would I be eligible for an offer in compromise. Is it also possible to offer them the apartment that I brought for my sister which for $110K. She passed away in November 2011, and my nephew is living there. Please advise.