Sale of a condo
My mom is 82 and her only income is social security, dividend/interest income, and takes a small distribution from my deceased dad's IRA. I would guess her total income is around 45k, maybe less. My dad died in 2009 and we just sold her condo in FL and she moved into an assisted living facility in Georgia. After the commissions and fees her net from the sales was $647,000. The condo was bought in 1990 for 91k and it was worth 227k when my dad died in 2009. She put 50k in improvements into the condo so by my calculations her cost basis is $209,000. After she takes the 250k exemption I think she would be taxed on $188,428 of long term capital gains. My question is if she doesn't have much income in 2023, 45k or less, will she have to pay capital gains on that 188k or is her income too low. If she does do you know the percentage because if she does I would want to pay estimated taxes. If she is close to the income threshold of having to pay taxes on that 188k is there a way not to take social security temporarily or do we put the money from the sale into an account that doesn't pay interest?
