Our mother, who is still alive, transferred the deed of her house to her children in 2006. We are now selling the home. Will we be taxed on the proceeds?
Because your mom gave you and your siblings the house during her lifetime, you will have to use her basis -- what she paid for the house plus any improvements she made -- to calculate the gain. So if she bought the house in 1970 for $50,000 and made $25,000 in improvements, and you net $600,000 on the sale, then the $525,000 difference could be taxable.
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