asked

A gentleman received proceeds from the sale of a home that was his mother's. He lived in the home for several years and his sisters had to pay tax on the amount he paid them. He is in California and received a 1099-S from the title company for the proceeds. A CPA advised him on how much to pay his sisters, and he has a K-1 for over $90,000. He wants to claim the $250,000 exemption. Can he claim the exemption, and what documents does he need to have if audited to prove he lived there for over two years?

November 15th, 2023

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