Mother in Law be a dependent?

[yeknod]

I have done some research and getting conflicting information.  Can a mother in law be a dependent?  She lives full time with taxpayer.

Also, the mother in law had 90K in capital gains and only other income was Social Security of 13K which 11K was taxable.

[jeffmcpa2010]

Try this IRS Tool, helps me out often

https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

[yeknod]

Does the gross income include capital gains? 

[Frustrated-in-IL]

Can you reference the "conflicting information" you are getting?

A mother-in-law can be a "qualifying relative".  But not with an income in excess of $4400 for 2022.  In your case, income is gains from sales of property plus taxable Social Security, or $101000K.  Once you fail the gross income test, you can stop and not even consider the failure of the support test. 

[yeknod]

So Capital gains from the sale of stocks and mutual funds are considered income?

[Frustrated-in-IL]

Let me ask you a question.  Why is their any doubt that it is income?

[qbteachmt]

"are considered income?"

Investment income. Not earned income. Still income.

[yeknod]

Because it is unearned income.

[Accountant-Man]

It's income.

[Frustrated-in-IL]

So let's apply some common sense here.  Mother-in-law wins the recent billion dollar lottery.  We all agree lottery proceeds are unearned income.  Does it make any sense that she can be claimed as someone's dependent?  Of course not.

Gross income means gross income.  It is defined in Publication 501 in the section devoted to a qualifying relative.  It explains that a qualifying relative must have gross income less than $4400.  Since $100000 of mother-in-law's income is greater than $4400, it is clear that she fails the gross income test and cannot be a dependent.  

[taxes96786]

Gross income is all income from all sources