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Subject:  Re: Tax on sale of Grandma's home Date:  1/10/2002  5:52 PM
Author:  Parkway Number:  57048 of 127613

If you are providing over half of her support, and her income is less than the personal exemption amount for the year, she might qualify as your dependent. Unlike other people, parents (and grandparents) do not have to live with you to be a dependent. But they still have to meet the other dependency tests. The value of the housing you provide is part of her support.

This isn't really related to the tax treatment on the house sale, just a general question for Peter based on his comment.

For dependency, aren't there lots of relatives who don't have to live with you - children, siblings, nieces and nephews, aunts and uncles... The area where parents are treated differently from other relatives is in qualifying a taxpayer to file as head of household, right? But in order for a grandmother to be a qualifying person for HOH status, she would have to live with the taxpayer, right?

- Parkway
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