What real estate/tax issues should my grandmother be aware of?

[moinaustin]

My grandmother is on a limited income and is thinking of selling her home which is paid off but in bad condition.

She would be selling it at a loss and is worried that the monies she receives from the sale will affect her income.

What tax issues should she be aware of ?

[curtisports2]

If she is selling it at a loss and has documentation to prove it she may be able to reduce any tax she might otherwise owe. She will have no income from the sale of a property that is sold at a loss.

[curtisports2]

If she is selling it at a loss and has documentation to prove it she may be able to reduce any tax she might otherwise owe. She will have no income from the sale of a property that is sold at a loss.

[Judy]

If she sells at a loss, she won't owe income tax on the proceeds of the sale. If she is receiving any type of public assistance she should check with the people who administer it to be sure that wouldn't be affected.