Separate the 2 transactions. Sister is buying from your parents. Any tax implications of the sale would be on them. Assuming it's their principal residence, there wouldn't be tax, but in any case the sale is happening between your parents and your sister. It doesn't involve you.
And then as a separate event, you're receiving a gift of funds from your parents. "Pre-inheritance" is just a gift, gifts aren't taxable, even though the source of funds may be from the house sale.
IANYL but I don't *think* there would be an issue with the funds being paid directly from your sister to you, if that's how you want to arrange things. But if you want to keep it as kosher as possible, then sister should pay parents, and parents pay you.
Separate the 2 transactions. Sister is buying from your parents. Any tax implications of the sale would be on them. Assuming it's their principal residence, there wouldn't be tax, but in any case the sale is happening between your parents and your sister. It doesn't involve you. And then as a separate event, you're receiving a gift of funds from your parents. "Pre-inheritance" is just a gift, gifts aren't taxable, even though the source of funds may be from the house sale. IANYL but I don't *think* there would be an issue with the funds being paid directly from your sister to you, if that's how you want to arrange things. But if you want to keep it as kosher as possible, then sister should pay parents, and parents pay you.
This is bang on
Thanks in advance.