# taxes on my mom's house that she's selling **URL:** \ **Category:** Factual Questions\ **Created:** [April 24, 2002, 4:23pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380 "2002-04-24T16:23:18Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![handsomeharry](https://avatars.discourse-cdn.com/v4/letter/h/e9c0ed/32.png) [@handsomeharry](https://boards.straightdope.com/u/handsomeharry)\ **Post date:** [April 24, 2002, 4:23pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380/1 "2002-04-24T16:23:18Z")
My mom is selling her house for $50,000. She owes 33 thousand on it. She doesn’t plan to buy another one. This one has been her only residence for 30 years. What kind of tax liability will she have? Any sites/cites that I can go to?? thanks ---
**Author:** ![Kamandi](https://avatars.discourse-cdn.com/v4/letter/k/5daacb/32.png) [@Kamandi](https://boards.straightdope.com/u/Kamandi)\ **Post date:** [April 24, 2002, 4:36pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380/2 "2002-04-24T16:36:45Z")
[She’ll pay no tax.](http://www.irs.gov/faqs/display/0,,i1%3D54%26genericId%3D15906,00.html) > [@](#): > > **I sold my principal residence this year. What form do I need to file?** > > If you meet the ownership and use tests, you will generally only need to report the sale of your home if your gain is more than $250,000 ($500,000 if married filing a joint return). This means that during the 5-year period ending on the date of the sale, you must have: > > - Owned the home for at least 2 years (the ownership test), and > > - Lived in the home as your main home for at least 2 years (the use test). > For additional information on selling your home, refer to [Publication 523](http://www.irs.gov/pub/irs-pdf/p523.pdf), _Selling Your Home_. ---
**Author:** ![handsomeharry](https://avatars.discourse-cdn.com/v4/letter/h/e9c0ed/32.png) [@handsomeharry](https://boards.straightdope.com/u/handsomeharry)\ **Post date:** [April 24, 2002, 7:16pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380/3 "2002-04-24T19:16:43Z")
A blessing upon you, Kamandi. Thank you for your help! (and the good news!) ---
**Author:** ![Kamandi](https://avatars.discourse-cdn.com/v4/letter/k/5daacb/32.png) [@Kamandi](https://boards.straightdope.com/u/Kamandi)\ **Post date:** [April 24, 2002, 9:10pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380/4 "2002-04-24T21:10:59Z")
Why, thank you very much, Harry. But please, don’t take my word for such an important financial decision. Be sure to read Pub. 523, which is linked above. ---
**Author:** ![handy](https://avatars.discourse-cdn.com/v4/letter/h/b5a626/32.png) [@handy](https://boards.straightdope.com/u/handy)\ **Post date:** [April 24, 2002, 10:33pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380/5 "2002-04-24T22:33:23Z")
Kamandi, doesn’t that,like most laws, depend on the city/state/country? So, no state taxes either? ---
**Author:** ![Kamandi](https://avatars.discourse-cdn.com/v4/letter/k/5daacb/32.png) [@Kamandi](https://boards.straightdope.com/u/Kamandi)\ **Post date:** [April 24, 2002, 11:58pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380/6 "2002-04-24T23:58:34Z")
Good point, **handy**. I had assumed the question was about United States **federal** income tax, since the OP’s location is Oklahoma. Since [Oklahoma’s state income tax is calculated based on a resident’s federal taxable income](http://www.oktax.state.ok.us/oktax/incomtax.html), if the sale of a residence is not federally taxable, it’s not subject to Oklahoma state income tax either. I’m unaware of municipal tax on the sale of a primary residence. ---
**Author:** ![toadspittle](https://avatars.discourse-cdn.com/v4/letter/t/c0e974/32.png) [@toadspittle](https://boards.straightdope.com/u/toadspittle)\ **Post date:** [April 25, 2002, 3:01pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380/7 "2002-04-25T15:01:20Z")
NYState has a “transfer tax,” which means the seller has to pay the state for the privilege of selling real estate. For every transaction, the seller owes the state, IIRC, $4 per $1000 of the sale (i.e., a house sold for $100,000 will yield the state $400). Check with your Mom’s state, obviously. ---
**Author:** ![Running\_with\_Scissors](https://avatars.discourse-cdn.com/v4/letter/r/a183cd/32.png) [@Running\_with\_Scissors](https://boards.straightdope.com/u/Running_with_Scissors)\ **Post date:** [April 25, 2002, 5:41pm UTC](https://boards.straightdope.com/t/taxes-on-my-moms-house-that-shes-selling/105380/8 "2002-04-25T17:41:08Z")
How is it she lived in it for 30 years, yet still owes $33k on it? Was she renting it part of the time before purchasing it?