Did your parents agree to split money now? If they have lived there for 2 of last 5 years they can sell and exclude $500k from capital gains. IE if they didn't make over $500k from the original purchase price they have no taxes due. Then they can give it to whoever or keep what they need for medical care. You would have to check in with your cpa to see how much money they can gift you, but that doesn't have anything to do with the sale of the house. If the house had been a rental then you could exchange part of it for another investment property. Depending on how much capital gains there are you may want to turn it into a rental before selling, I'm guessing though that there aren't enough gains and not something you would prefer to do. Your transaction may have large tax consequences. Do not rely on online info, but hire an accountant who can help you out. If you need referals please contact me.
I would recommend that you speak with a tax specialist. I have one that we personally use along with many of my clients. Please email me offline if you would like his name.
Suzanne Looker, email@example.com... more