User:207.200.116.8

From TaxAlmanac

I have a client who wishes to sell her neighbor her personal residence and retain the right to possession there until she dies or has to leave the property for a care home. The neighbor is willing to buy the property under those conditions and will start to "fix it up".

My client does not have any relatives other than charity and this will allow her to enjoy the home for her remaining years without the costs of upkeep. She is in her late 80's.

Will she quailfy for the 250K exclusion? We are looking at about a 33% discount off the fair market value as an arms length number both parties can agree on. The total gain over basis after the discount is about $400,000.