My parents want to sell their real property single family home. And move into a 55+ community. The new home is a mobile home. We can call it manufactured home if you wish.
I read that if you sell your home, and buy another one, you don't have to pay cap gain tax. Yes, they do meet the requirements such as living there more than 2 years, etc.
My questions are:
1. Is mobile home consider a house for tax purposes? Or as long as it's primary residences it does not matter.
2. The current house is 100% paid for. No finance amount. Is all of it a "gain?"
3. When they got the house, it was $220K. Paid cash in full. They will be lucky if they can sell it for $160K today. So relating to #2, is there a gain or lost?
Thank you.
I read that if you sell your home, and buy another one, you don't have to pay cap gain tax. Yes, they do meet the requirements such as living there more than 2 years, etc.
My questions are:
1. Is mobile home consider a house for tax purposes? Or as long as it's primary residences it does not matter.
2. The current house is 100% paid for. No finance amount. Is all of it a "gain?"
3. When they got the house, it was $220K. Paid cash in full. They will be lucky if they can sell it for $160K today. So relating to #2, is there a gain or lost?
Thank you.