How should I feel about this?

[Chicago526]

Marie l7, thanks for the info on capital gain. No my mother was not living with us. This is a vacation home that she has lived in for 8 years. It was her idea in the first place, we really didn't want to do it but wanted her to have a good place to live. Then we planned to retire there. So she has been living there for about $250 a month for the last 8 years. But you are right, the l8,000 would factor in alot. We have been paying for every thing else plus lots of repairs. She doesn't want to just have me and her on the l8,000, she wants my brothers name on it too. Like I said, he doesn't even know she did this because of all the money she shelled out to him. He doesn't know she put a down payment on it. So he will be insulted and not understand this. She will be moving in with us in our home and I will be taking care of her for the rest of her life, God willing. She knows my brother would never take her in. I will not ask for a penny while she lives with us. I have power of attorney for health only for her. Finances are still up in the air.

This may change your capitol gains situation. If this house was in YOUR name but you did not live there as a primary residence, you may not be exempt at all for capitol gains and may have to pay it, again minus any improvements made. You really should consult a tax expert to determine what, if any, capitol gains taxes you may owe.

IMO, since you'll be careing for your mother for the rest of her life, she should let you keep the $8,000 (or $18,000, your posts weren't clear). But that's just me.

 

[thumpersfriend]

I was really excited thinking I wouldn't have to pay capital gain but I am sure I will since it is our second home. My mom doesn't need too much help right now, she thinks she might go into an apartment but I know she would love to stay with us. She has alot of health issues and I am a nurse so she feels safe here with me. My husband is so sweet and thinks the world of her and has no problem with her living with us.

 

[Marie17]

Sorry to get your hopes up - but the capital gains exemption is for your "primary" residence. I didn't realize this was a vacation home. My bad.