Inheriting a house comes with a load of mixed feelings; inherited properties, after all, imply the death of the original owner, and the succession of valuables to an heir or heirs. This may be emotionally difficult, as it involves the death of a loved one.
Being the heir of an inherited property may leave you wondering “I inherited a house, now what?” Do not worry, you’ll find all the details you need to make an informed decision in this blog post.
What they don’t tell you about inheriting property
While the thought of getting a house for free may seem exciting, in reality, inheriting property comes along with a lot of emotions and financial responsibility that they don’t often tell you about. For starters, inheriting a house may come along with a yearly property tax liability that you’ll be expected to pay as the new owner. This may be a financial obligation that you are not ready to undertake.
When you inherit a house, it may also come with a lot of things in need of repairs that will cost a lot of money. These repairs may be necessary regardless of what you decide to do with the house – rent it out, live in it, or sell it on the open market. This is where Tgaz Investments and our unique buying model steps in and saves the day.
What are your options when you inherit a house?
- Live in it: Choosing to live in your inherited house, then there are a few questions you should ask yourself. Have you inherited a house with no mortgage payment or is the mortgage loan still active? Is the property in need of heavy repairs? Will it involve making a move and changes to your lifestyle? If your answer to all the above questions is yes, then we strongly advise that you reconsider your decision to live on the inherited property. Regardless of any sentiments attached, such a move will take a toll on your finances and quality of life.
- Rent it out: Renting the property out makes you the landlord. This means that in addition to receiving rent, you will need to provide your tenants with estate management support and be ready to foot any maintenance bills that arise.
- Sell it: The process of negotiating a sales price on the open market may be long and intimidating. selling inherited property can also accrue legal costs that can run into large sums of money. This is how we help you.
Tax implications of inheriting a house
There are several Tax implications of inheriting a house, however, many of these implications do not apply until you actually decide to do something with the inherited house. This is quite a dicey situation to be in because you need to do something with the inherited house.
If you decide to keep the house and move in, then you will be subjected to taking on the burden of mortgage payment (if the inherited property still has an active mortgage loan), maintenance expenses, repair costs, homeowners’ association fees, and yearly property taxes, alongside other miscellaneous expenses that will pop up from time to time.
If you decide to rent the house out, then you automatically assume responsibility for any maintenance fees, repair costs, property management fees, and other expenses. Although you may be able to get some deductions on your taxes with rental property, there is still a yearly property tax obligation on the inherited property.
If, on the other hand, you decide to sell the house in the open market, you will be subjected to a very slow and arduous sales process laced with disappointments and a lot of hidden costs. You will also need to get the house into a presentable condition which may involve renovations and repairs that end up running into thousands of dollars. You will also need to cover other expenses such as real estate agent fees, alongside staging and closing costs.
In terms of tax liability, you will be required to pay capital gains tax on the sale of your inherited house. This is, however, usually calculated based on the market value of the property at the time of inheritance and the time of sale. So for example, if you inherited a house that was purchased for $75,000 10 years ago and was worth $300,000 at the time you inherited it, you will be taxed based on the capital gains the property accrued between the time you inherited it and the time you sold it alone.
I inherited a house and want to sell it
If you have inherited a house and are thinking about the most financially savvy thing to do with it, selling it with Tgaz Investments LLC may just be your best bet.
We will buy your house as it is, regardless of whether it is in an affluent or high-crime area, and offset any unpaid mortgage debts on the house.
Our buying process eliminates the need for fancy appraisals, costly repairs, and saves you thousands of dollars in potential selling and management fees. So hurry up and get on the phone with us today by calling (337)-227-9200.
We will take all liabilities off your hands and ensure that you get the best value for your asset. Call us now.