Capital Gains for elderly old on home sale.

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What is the name of your state?What is the name of your state? Massachusetts

We are considering moving my elderly mother to an independent living facility. She is 87 and in great mental and physical health. She currently owns a home in the Boston Massachusetts area that was purchased back in 1974 for aprox. $110,000. The current market value is now around $800,000. Can you please help in in determining taxes that she will have to pay to the Federal and State offices if and when she sells her house? I was under the impression that you could sell a primary residence that has been lived in for more then 2years and not pay capital gains - My accountant says that this is not true..... What is the best way for her to preserve her home equity as she needs this money to fund her remaining years and also hopefully preserve some of the wealth from her estate for her heirs.

 

[pojo2]

She can exclude up to 250K of the gain.

Then that sale would be up for scrutiny if those funds end up in say your bank account in order to qualify for Medicaid.

Not saying that is the plan in anyway here but don't be offended at the suggestion it is seen here almost on a daily basis.

Before doing anything you might check with an Estate or Financial Planner.