Claiming mother as a dependent after her home sale
My mother moved in with me from out of state in Sept 08 to finish recovering from a serous illness. Her only income was a monthly disability check. Her home went on the market and sold in July 09 for $135K, minus about $10K of the proceeds for repairs and clean-up. She has purchased a new home near me for around $106K. She will use the remainder to get caught up on dr. bills, etc.
It has occurred to me that because of her home sale I likely will not be able to claim her as a dependent on my taxes for this year either. Am I correct, or is there any legal way to get around counting the proceeds from her home sale as income? She was never able to help me out with living expenses, and I was hoping to mitigate that situation by claiming her.