When is the best time to sell a parent's home when they live in an assisted living facility and won't be returning?
When is the best time to sell a parent's home? My mother is now living in an assisted living home and will not be able to return to her own home. The home was placed in my sister's name and mine on the death of my father in 2002.
If your mother transferred her home to you and your sister in 2002 and she's no longer able to live in the home and isn't likely to return to it in the future, the decision whether to sell the home becomes a business decision for you and your sister.
The real estate market is not particularly good at this time so if you're willing to undertake the job of becoming a landlord, you may want to put off selling the property and rent it out instead. Even if you don't want to be a landlord, you may want to look into the cost of having a management company manage the property on your behalf. It will cost for these services, but you will avoid the headaches of being a landlord.
If you prefer to get rid of the property and sell it, you will pay capital gains taxes on the difference between the price that you sell the property for and your mother's tax basis in the property. Your mother's tax basis in the property is a bit complicated. Assuming that she and your father owned the property together at the time of his death in 2002, your mother's basis when she gave the property to you and your sister would be the total of half of the value of the property at the time of your father's death plus half of the original purchase price. You should consult an accountant to get an accurate indication of the tax ramifications of the sale to you and your sister.