Latest Posts
Home > Ask The Get Out of Debt Experts > Can My Father Sell His Home Without Paying Taxes? – Eva

Can My Father Sell His Home Without Paying Taxes? – Eva

“Dear Jim,

I am in charge of my dad’s property.

My father 82 urs old, lives in Mexico and owns a 2 flat that he rents out here in the US , he has asked me to sell it. In order to take advantage of the 1 time tax free sale of a property for people over 65 does the property have to be owner occupied?

Eva”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Eva:

Thanks for your question.

Here are the rules for tax-free sale exclusion of a principal residence:

To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have:

Owned the home for at least 2 years (the ownership test), and

Lived in the home as your main home for at least 2 years (the use test).

Rental property is not excludable unless it meets these tests.

Thanks

Jim

Can My Father Sell His Home Without Paying Taxes?   EvaJim Buttonow is one of the resident debt experts here at GetOutOfDebt.org that helps people for free. Jim is a licensed CPA who spent 19 years with the IRS coordinating large compliance teams of IRS agents and specialized personnel. In the last 5 years, Jim has invented consumer and practitioner software and treatises on how to address many different tax issues. He has also represented many people before the IRS examination, collection, filing, and appeals functions. He currently assists taxpayers on an active pro bono tax practice aimed at serving people in need. He can be reached at IRSMind.com.

If you have a tax question you’d like to ask just use the online form. I’m happy to help you totally for free.

Can My Father Sell His Home Without Paying Taxes? - Eva by

Share This and Spread the Word

About Jim Buttonnow

Jim Buttonnow
Jim Buttonow, CPA/CITP, is cofounder of Beyond415. He has more than 26 years of experience in IRS practice and procedure. Reach Jim at [email protected].

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.