Capital Gains Tax On a Sale
My mom is planning to sell a house that she has lived in the past almost 20 years.
However, the house in under my grandma’s name (who lives out of the country), but my mom has paid for the property taxes every year, along with the remaining mortgage post-down payment.
If she changes the deed from my grandma’s name to under her name, will my mom qualify for the Taxpayer Relief Act and be exempt from capital gains taxes for the sale? My mom has the power of attorney to sell the house on behalf of my grandma.
Ballpark numbers: purchased for $320k, will put on the market for $680k. In preparation for the sale, she’s put in about $50k in renovations. The house is located in Elk Grove (Sacramento), CA.