Buying With Mother

Expert, localized Los Angeles answers provided by Heather Roy

Buying With Mother
	We purchased our home 2 years ago for $595,000. Current price range in our neighborhood now is $439,000. Our home is a 3 br 2 bath 1,500sq. home. We would like to purchase something larger with my mother so that she can live with us. Her home is owned out right and worth about $300,000. What are the implications to her and us if we move forward with this plan?

	If you take a loss on the sale of your home, it's not tax-deductible. Same for your mother. If she has a profit, it won't be taxable if she's owned and occupied it for at least the past two years. So I don't see any tax implications of your plan at all.
	Edith Originally published on June 7, 2008

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