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URL:  http://boards.fool.com/i-have-owned-a-house-in-upstate-new-york-since-16425102.aspx

Subject:  Re: Tax on sale of Grandma's home Date:  1/8/2002  11:01 PM
Author:  pmarti Number:  56940 of 121061

I have owned a house in Upstate New York since 1997. Bought the house from my Grandmother and she still lives in it. She pays no rent. I do not live in the house, I rent a home in San Francisco. The balance of mortgage is $70K and house should sell for $120K. Can anyone tell me what my tax implications will be upon the sale of this house?

Can't tell you the $$ amount since the balance of your mortgage is irrelevant. You'll have a long-term capital gain of the excess of net proceeds of sale over your basis. See IRS Publications 550 and 551 or the FAQ.

Phil Marti
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