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Capital gains when selling for a relative
My mother-in-law is nearing the time to move to an assisted facility. We have been preparing her home for sale as well as various assets the could be marketed on ebay All proceeds would go to her bank intended for the cost of her care. I have done some research but unclear on what tax implications would involve myself. Would if make sense for me to write and record checks to her account for the total sale (minus fees) with the goal of basically showing no gain or loss on my tax return? Alternatively, would I try to guess the additional tax liability for me (claiming the gain) and withhold that amount to pay on my return.
Thanks
2 comments
nine_volts_dc
OP1 year agoThanks for your rely
lisa5768
Mentor1 year ago@nine_volts_dc
If you sell using your account it will be income to you, as you are the one receiving the funds. The best thing for you to do is consult a tax professional about how to set this up. They can help with what records you need to have and the best way to set up the payments to her. Depending on her financial situation and if she is/will be on state or government aid you may need to involve legal counsel to make sure you comply with those rules as well.