Jeannie, Jasmine, and Jessica Smith, who are sisters, sell their principal residence (owned as tenants in common)
Question:
Jeannie, Jasmine, and Jessica Smith, who are sisters, sell their principal residence (owned as tenants in common) in which they have lived for the past 25 years. The youngest of the sisters is age 60. The selling price is $960,000, selling expenses and legal fees are $63,000, and the adjusted basis is $120,000 (the fair market value of the residence when inherited from their parents 25 years ago). Since the sisters are going to live in rental housing, they do not plan to acquire another residence. Jeannie has contacted you on behalf of the three sisters regarding the tax consequences of the sale.
a. Write a letter to Jeannie advising her of the tax consequences and how taxes can be minimized. Jeannie’s address is 100 Oak Avenue, Billings, MT 59101.
b. Prepare a memo for the tax files.
Expert Answer:
Answer a Hoffman Maloney Raabe and Young CPAs 5191 Natorp Boulevard Mason OH 45040 October 21 2014 Ms jeannie smith 100 Oak Avenue Billings Montana 59... View the full answer
