Inherited house / tax implications

[kns11556]

undefinedWhat is the name of your state?California.
Here is the senario: House is part of an estate that is worth about $250,000.
If I hold on to this house and rent it out ( I own my own home ) and sell it at a later date, what are the tax implications? Thanks

 

[Rhubarb297]

undefinedWhat is the name of your state?California.
Here is the senario: House is part of an estate that is worth about $250,000.
If I hold on to this house and rent it out ( I own my own home ) and sell it at a later date, what are the tax implications? Thanks

You are taxed on the gain on the property above the basis (which is how much the inherited property was worth when you received it.) I believe the tax rate is 15% but I could be mistaken about that.

Look into possibly doing a 1031 tax free exchange if you do decide you want to sell it. Look into it BEFORE you sell the property.