Capital gains on house sale

J

JOEC26

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Hi. My Dad built a house in 1947 but I'm sure that most of the materials were pod for by his parents. His Dad died in 1957 and left the house to my Dad on the provision that his wife could live there got her lifetime. She died in 2003. Last September my Dad sold the house (and 10 acres accompanying). I understand that there should be no tax liability. Am
I correct?
 
you have not given us enough infomation to work that out. We need to clarify a few relevant facts.

Joe Junior built a house in 1947. His parents Joe Senior and Mary helped him buy some of the materials.

Who legally owned this house and the land it was on ?
Who lived in it, Joe Senior and Mary, Joe Junior or all three ?

In 1957, Joe Senior died and willed the house to joe Junior on the condition that Mary had a right to live it in which suggests that Joe Senior owned the house from 1947 to 1957.

In 2003 , Mary died

In 2012, Joe junior sold the house and land.

Was he living in the house prior to selling it ? If so, for how long ?
Was the land farm land that he was farming ?
 
Last edited:
Hi;
1. I would assume that the parents helped him buy some of the materials but that is by no means clear due to the passage of time
2. The legal owner would have been his father
3. All 3 would have lived in the house from 1947 until 1952 when Joe Junior moved away
4. Yes; I would ahve said that Joe senior owned the house until his death
5. Yes, Mary died in 2003

Joe Junior was not living in the house at all. The land was poor quality farm land & was not being farmed.

I asked this question in the past & the replies I received at the time was that there was no liability. Has this changed or did I get wrong advice?! Regards, Joe
 
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