[makocc21]

I have durable power of attorney over my mother and am selling her house to pay for her assisted living needs. My question is what tax reifications will I have and what is best to do with proceeds to defer taxes. I will need to have the funds available as her expense needs will increase.

[ebaines]

It's your mother's house, not yours, so you have no tax consequences at all. I am assuming that you will be putting the proceeds into a bank account in her name, not yours, correct? So the question really is: what are her tax consequences? Was this house her principle residence for at least two of the last five years? If so, she will not owe any federal income taxes on the sale of the house unless her gain on the sale is greater than $250K ($500K if married filing jointly). If her gain is greater than that she owes capital gain tax on the amount over $250K.

[AtlantaTaxExpert]

Ebaines has it covered. It is most likely she will owe NOTHING on the sale of the house.

If Form 1099-S is generated on the sale, the sale must be reported. If there is NO Form 1099-S, then the sale does NOT have to be reported.

[ScottGem]

First, your general locale is important here. I'm assuming ebaines and ATE answered based on US federal tax law.

You said Assisted Living. Is this a private center or will Medicare/Medicaid be used to pay for it. If so, you may have to turn over any proceeds to them.

[talaniman]

You have asked the same question before https://www.askmehelpdesk.com/other-...aw-832153.html, but never answered the questions of who advised you to sell, and why your mom was NOT on Medicaid/Medicare. That would make for a better answer to your questions because the options would change and give you greater flexibility as what you should or shouldn't do.

It seems selling her home would be the last consideration rather than the only one, especially if its paid for. How long will here proceeds go until they are exhausted from paying her monthly bills?