Legal Question in Tax Law in Massachusetts

Re: tax law real estate

Your query requires more info to be answered completely like,the values at the time of acquisition and value of sale consideration so that exact amount of capital gains could be calculated.If you invest the amount of such capital gains into purchase of a new house or construction of a house then no tax has to be paid subject to time limits.

Re: tax law real estate

More information is required to determine if the property is subject to Capital Gains. Starting with was a gift tax return filed for the gift of the home.

Other considerations to be considered are: is your father's assisted living be paid by Medicaid/ Mass Health?; if not, was the transfer made with the intent of making a gift or for estate purposes?; did your father retain a life estate in the home?;

Please feel free to contact me to discuss the matter in more detail without obligation.

Re: tax law real estate

If a taxpayor meets the following 3 requirements, he is allowed to exclude $250,000 from the capital gain on the sale of his home ($500,000 for married filers);

1) He must have lived in the property as his principal residence for any 2 year total period within the last 5 years looking back from the date of sale;

2) He must have owned the property for a 2 year total period within the last 5 years; and

3)He did not use the exclusion within the last 2 years.