Houzz Logo Print

Capital Gains confusion sale family home

5 months ago


I don't know if this is the right area of the forum to ask this question. If not, can someone tell me where to post?

My dad's been in his home, in Sacramento, for 57 years. Unfortunately, we had to move him to a care home. We're trying to decide when to sell the house. The decision will depend on Capital Gains (CG) taxes. If we wait until he passes, there's no CG, but it's confusing if we decide to sell it now.

Everything I've read says no CG owed if taxable income, not including sale of house profits, is <42K. His taxable income is around 38K, so no CG? But I've used 6 different CG's calculators including Forbes, NerdWallet, and Smart Asset calculators.

Some of them let you put in the taxable income not including sales profit. Even if I put in 38K as his taxable income, the calculators all say he would owe CG up to $80,000 in CG! He bought the house in 1966 for 22K. Hopefully it will sell for around 450K.

The calculators also don't seem to take into account the $250,000 exclusion. Are these CG calculators that unreliable? Will CG be owed?

Thanks for your time!

Comments (22)