What is the name of your state (only U.S. law)? Ohio
My husbands grandmother has not filed taxes in several years. She is 77 years old, and stopped filing several years ago due to her only income being social security.
I have done taxes (basic ones, for family and friends) for a few years now, so granny asked me to take a look at hers this year ...
She and grampy bought a house in Indiana in 1969 (they have always lived in Ohio, the Indiana home was used as a vacation home). Grampy died several years ago. She sold the Indiana house in May of 2008. The house was purchased for $8000 in 1969 and sold for $75,000 ... a capital gain of $67,000... with her owing $6000+ in federal tax, and $2000+ in state tax.
Granny, however, thinks that because she is 77 years old, she should not have to pay capital gains tax, or that a person is entitled to one "free" capital gain in their lifetime, or that there has to be something out there that I have not been able to find in my researching on the subject, that would allow her to not have to pay such a high capital gains tax.
Can someone please offer me a little guidance on this? Thanks in advance!
My husbands grandmother has not filed taxes in several years. She is 77 years old, and stopped filing several years ago due to her only income being social security.
I have done taxes (basic ones, for family and friends) for a few years now, so granny asked me to take a look at hers this year ...
She and grampy bought a house in Indiana in 1969 (they have always lived in Ohio, the Indiana home was used as a vacation home). Grampy died several years ago. She sold the Indiana house in May of 2008. The house was purchased for $8000 in 1969 and sold for $75,000 ... a capital gain of $67,000... with her owing $6000+ in federal tax, and $2000+ in state tax.
Granny, however, thinks that because she is 77 years old, she should not have to pay capital gains tax, or that a person is entitled to one "free" capital gain in their lifetime, or that there has to be something out there that I have not been able to find in my researching on the subject, that would allow her to not have to pay such a high capital gains tax.
Can someone please offer me a little guidance on this? Thanks in advance!