Question from Anonymous Caring.com community member
Should I sell my parents' house if they are no longer able to live alone and have them move in with me? How do I avoid taxes for them if the house is sold?
Expert Answer by Liza Hanks
Liza Hanks is the founder and owner of FamilyWorks Estate Planning, a law firm with offices in Campbell and Los Altos, California, and the author of The Busy Family's Guide to Estate Planning (Nolo, 2007).
This decision may depend on what's best for them psychologically.
If selling the house and moving in with you makes the most sense for them, and they are open to the idea, then that's a reasonable plan.
From a tax standpoint, they will be subject to capital gains taxes on the sale of the house, although they will have an exclusion equal to $500,000 if it is their primary residence and if they are married and filing jointly.
