I'm in desperate need of some help. I've been asking different tax consultants about this situation, and I keep receiving different answers.
My parents purchase a Tudor style home about 30 years ago in Denver Colorado. About 8 years ago, my dad refinanced the home and used the money as a down payment on his current home. He was not able to sell his home at the time, and shortly after, the economy went to pieces. Its been about 9 years, and we decided to put the house on the market.
He purchased the home for about $54k, we have received an offer of $355k. He currently owes about $170k. In the time that he lived there, he did a lot of work to the home on his own, but doesn't have copies of the receipts. The house is currently under both my mom and dad's name.
Can you please help me guesstimate what he will end up paying in capital gains taxes? I believe between he and my mother (who works part time), they earn about $110k a year.