“Capil Gains is now 20% plus 3.8% 0bamacare tax for those making over $250k per year.
Under $250k it is 15% and no 0bamacare taxes.”
But if your Dad lived in the house for more than 5 years, I believe he is exempt for the first $500k of profit on the sale of his house.
My mom is no longer living so the exemption is $250K. Jointly it would be $500K.
$500k for married; $250k for single. BUT, when your spouse dies, I’m pretty sure you can reset the basis to market value on the date your spouse passed. That’s what our financial advisor has told us.
The key word is PROFIT. Take what was paid for the house, add cost of improvements (roof, heater, AC, etc.) and subtract from proceeds. That is capital gains. No profit, no tax.