What taxes are owed?

[DotCatini]

What is the name of your state? Pennsylvania
We just sold my Mother-in-laws home. She had to move into a home with round the clock care. The deed to the home was in her name,( my Mother-in-Law) plus her Son's (my Husband) plus her Daughters name(my Sister-in-Law).
The monies from the sale was split 3 ways. My question is what taxes are owed? The only person that lived in the home was my Mother-in-Law. The deed has been in all 3 names forthe last 9 years. My Mother-in-Law was compleatly dependent on her Son and Daughter for the last 9 years because she never left the house. The amount each received was $129,000.00
Thank you.

 

[BelizeBreeze]

What is the name of your state? Pennsylvania
We just sold my Mother-in-laws home. She had to move into a home with round the clock care. The deed to the home was in her name,( my Mother-in-Law) plus her Son's (my Husband) plus her Daughters name(my Sister-in-Law).
The monies from the sale was split 3 ways. My question is what taxes are owed? The only person that lived in the home was my Mother-in-Law. The deed has been in all 3 names forthe last 9 years. My Mother-in-Law was compleatly dependent on her Son and Daughter for the last 9 years because she never left the house. The amount each received was $129,000.00
Thank you.

Long term capital gains for one. Contact a tax attorney to review the sale and your specific tax situations.

Is mom's share in a trust for her care?

 

[DotCatini]

Long term capital gains for one. Contact a tax attorney to review the sale and your specific tax situations.

Is mom's share in a trust for her care?

Yes, my Husband was granted gaurdianship and deposited her share to pay for her maintenance. We had an attorney present at the closing of the home, he is the same attorney that handled the guardianship. He did not give us any information as to what taxes have to now be paid, that is why I am asking. My Husband and I are retired and want to do this by the book, so we don't get penalized later.

 

[pojo2]

Into a separately maintained account right?

deposited her share to pay for her maintenance

 

[DotCatini]

Into a separately maintained account right?

deposited her share to pay for her maintenance

Yes, into an account used solely to pay for her care.

 

[Dandy Don]

If either side of the parties involved in the sale/purchase of this home did not have a real estate attorney involved, that could have been a serious mistake.

You need to have a real estate attorney look at the documents you signed to make sure there are no serious omissions or errors. The guardianship attorney is not really experienced enough with real estate matters to know everything involved with a real estate transaction, as you have already discovered.

And you also need to contact the county tax assessor to find out if property taxes have been kept current or may be still outstanding, if you do not already know whether these have been paid.

DANDY DON IN OKLAHOMA ([email protected])