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Old 03-07-2017, 04:28 PM
 
2 posts, read 1,322 times
Reputation: 10

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My parents are still both living but getting elderly. My sister and I wanted them to get closer to one of us, it didn't matter which one as long as one of us got them close. Our parents had Quitclaimed their house to us about 10 years ago to protect the home from any medical issues that might arise where the state could come after the house. My parents house sold this past summer and my sister and I were advised, by attorneys, to have both our names as well as my parents on the sales contract. Out attorney also gave us a Actuary table and advised us to report the proceeds of the sale per the "Lifetime Estate" values based on my parents age. The actual NET proceeds from the sale of the house were almost exactly the same as the basis my parents had in the property. By advice of attorney, we turned those proceeds into the purchase of another property for them in mine and my sister's name with a "Lifetime Estate" for our parents. They are now living in the house independently of me or my sister. Now my sister and I have received a 1099-S for the split of the proceeds on the sale of the house. Since we turned around and purchased another house with the proceeds PLUS another significant investment should there be any tax issues on the sale of the original house? How should this be handled on our income tax forms.

The reason we handled it this way, as advised by attorneys, was to prevent any 5 year look back period from the state should medical issues arise. Please advise.
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Old 03-07-2017, 06:28 PM
 
363 posts, read 481,915 times
Reputation: 375
I would talk to a tax advisor.
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Old 03-07-2017, 07:14 PM
 
Location: Knoxville
4,705 posts, read 25,289,485 times
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You should be talking to your attorney, and not taking advice from an internet forum.
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Old 03-08-2017, 02:56 PM
 
11 posts, read 23,586 times
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CPA better safe than sorry.
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Old 03-08-2017, 04:06 PM
 
2 posts, read 1,322 times
Reputation: 10
This is a very unusual situation and I have talked to 2 different CPA's with differing opinions. Much like the 4 different attorneys we talked to before selling the property.
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Old 03-08-2017, 09:31 PM
 
Location: Knoxville
4,705 posts, read 25,289,485 times
Reputation: 6130
You could keep trying CPA's and attorneys until you get the answer you are looking for. Or, listen to one of the attorneys that has already giving you advice on this matter.
Asking an online forum for legal and tax advice is just not a very good idea.
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