Parents seniors and selling house – -gains?
Dear Terry,
It is a pleasure writing to you. Both my parents are seniors my father is 80 and my mother 70. They will be selling their house in Texas soon, and my question is once they receive the money what can they do so that they wont get taxed? Or is there anyway out of that? And what can they do so that they could save up still but enjoy with their investment.
I look forward to hearing from you soon.
Terry Says
Since they are a married couple, they can exclude $500,000 of gains from their taxes. That should do it! If not, it will be considered a capital gain reported on Schedule D–And those capital gains tax rates may rise after the election, so you might want to move the sale to this year– with a provision for them to stay there and pay rent if the are not ready to leave — depending on the election outcome.
