Inheritance And Real Estate
My husbands mother recently passed away. Prior toher death she made out a life estate quit claim deed granting herself the right to live in her home as long as she was alive with it to quit claim to her three sons jointly upon her death.
Q: When the house is sold, will the proceeds still be considered inheritance and therefore exempt from taxation
or
Q: Would it be exempt regardless under the $250,000 per person per year capitol gaines exemption?
How much did you enter for the field "Amount of Your Debt the Buyer Took Over?"
If you incorrectly entered $63000 (or something close) that could explain your high tax bill.
Your buyer did not "assume" a debt. Instead, you hold the mortgage note that the buyer is paying. Enter zero for that amount.
Only enter the actual principal payments (including downpayment) and mortgage interest received.