AnnieR Posted April 4, 2009 Report Share Posted April 4, 2009 Man and woman have lived together for over 20 years, OH is not a common law state. Male partner bought a home in 2000, female not on deed. Male passed away in late 2007, left house to his girlfriend, and home was deeded over to her in September of 2008. She wants to sell the house because she cannot afford it on her retirement income. It is a very nice large home. Does she have to wait 2 years from the time it was put in her name for the Section 121 to be in effect if she sells it at a profit. I hope I explained this well enough. Unfortunately, or maybe not, this is a friend of mine and I don't want to give her the wrong advice. AnnieR Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 4, 2009 Report Share Posted April 4, 2009 She has to own it for two years and use it as her personal residence to use 121. But, she gets a step-up in value on DOD (or alternate if used by estate) and houses certainly haven't been increasing in value rapidly where I live. She could discuss FMV with a local realtor. She might not have a profit or just a small profit and would get cash out of the house by selling sooner than two years. Quote Link to comment Share on other sites More sharing options...
AnnieR Posted April 4, 2009 Author Report Share Posted April 4, 2009 She has to own it for two years and use it as her personal residence to use 121. But, she gets a step-up in value on DOD (or alternate if used by estate) and houses certainly haven't been increasing in value rapidly where I live. She could discuss FMV with a local realtor. She might not have a profit or just a small profit and would get cash out of the house by selling sooner than two years. Thank you, Lion, In this area, property isn't selling, unless it is being bought by people speculating in foreclosure sales. She has a son who, IMO, worries about seeing his inheritance going downhill, doesn't want her to sell, then tells her she's going to have to pay a lot in capital gains if she does and she can't afford to do that. He has her worried, but he doesn't offer to help pay for the things to help her stay in her home. I suggested a reverse mortgage, but he doesn't want his children to have to "buy back" the house when she dies. Sometimes, not very often, I am glad I don't have kids. AnnieR Quote Link to comment Share on other sites More sharing options...
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