Will my mom pay capital gains after selling two houses?
Hey guys. I’ll keep this short and sweet. My grandma passed last year, January of 2025, and left my mom her house. My mom sold that house January of this year. She purchased a new home March of this year. Today, she sold her primary residence that she owned since 2009. It was my understanding that if she sold her primary home and used the money to purchase a new home, the money from the sale would not be taxed, and that the sale of an inherited home also would not be taxed. (We live in California, for reference).
However, she’s stubborn as all hell and went to the county assessor sometime last year before selling my grandma’s house to make it her “primary residence” as to avoid paying high property taxes (I believe to take advantage of Prop 19). I told her it wasn’t worth doing as she only planned to keep the house a few more months, but she didn’t listen. Now we’re wondering if she screwed herself over because of the change of “primary residence” and if she’ll owe capital gains taxes on one of the houses, or if she would’ve had to do that regardless of how it was filed with the assessor.
We are welcome to any possible insight. We are also wondering what type of tax accountant would be best to find to file her taxes next year. Thank you so much!