My mother died and left my sister and me the family home. I purchased my sister’s half of the home about a month after the estate was settled. About four months after buying my sister’s half, I sold the family home to my daughter, who has been living in this home since the death of my mother. What are the tax consequences to my sister, my daughter, and me? (E.H., Minnetonka, Minn.)
Yikes! This is a question that needed an answer before you took action. After-the-fact tax planning is often tragic.
Your question stirs up a hornets’ nest of tax rules. Things you ... Log in to view full article.