Possibly. If the funds represented sales proceeds, they must be compared to house's basis (the original cost plus any improvements) and the differential, if any, representes potential taxable income. If the house were the principal residence of anyone, his/her share may become non-taxable under the rules for sale of a personal residence. If the house were not the principal residence of anyone, there could be a taxable gain, or possibly a tax loss. More information is needed to provide a better response. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship. Different or additional facts not presented could change the response.