My mom sold the mobile home she lived in for 20 yrs for $63000. both my brother and I were on the deed and we are also on the joint bank account that the money was deposited in (but we didn't live with her). She also has a revocable living trust that we are both on. She lives with me now.
Will we have to pay taxes on this money?
Not if she claims it as her income. Also, if she sold it for less than she paid for it, there would be no tax. Tax is only on any increase over what was paid for it, if any. If there is taxable gain, the IRS doesn't care who claims it among joint legal owners, particularly if only one takes the gains and reports 100% of that amount on their taxes. It gets a little more complex if gains are split, but it doesn't sound like that applies.
Not if she claims it as her income. Also, if she sold it for less than she paid for it, there would be no tax. Tax is only on any increase over what was paid for it, if any. If there is taxable gain, the IRS doesn't care who claims it among joint legal owners, particularly if only one takes the gains and reports 100% of that amount on their taxes. It gets a little more complex if gains are split, but it doesn't sound like that applies.
