Sold my moms house in 2025
My mother moved into a Memory Care facility January 2025. In order to afford the cost we sold her primary residence in October 2025. The house was held in our Family Living Trust, of which I am co-trustee and now have POA for her, since 2 doctors verified she is unable to handle her affairs. Need advice on preparing a 2025 tax return for her or the Trust. Also need advice on limiting the tax liability for the gain etc…Thank you.
Quick Answer:
The sale of your mother's primary residence, held in the Family Living Trust, will be reported on her individual 2025 tax return (Form 1040) using her Social Security Number. A revocable living trust is generally disregarded for income tax purposes during the grantor's lifetime, so the trust itself typically won't file a separate return for this transaction.
To limit tax liability on the gain, your mother may be eligible for the primary residence exclusion. She can exclude up to $250,000
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
