What Should You Do With An Inherited House?

What Should You Do With An Inherited House?

Inheriting a house can be both, financially uplifting or an emotionally taxing time for many people. During this time, we typically tend to think of the time we had spent in the house before we inherited it.

We think of the times we sat together as a family, playing board games and sharing laughs. We may even think about the times we once took for granted, the simple times of our childhood.

No matter what, making a decision about inherited property is never easy.  An estimate of worldwide wealth claims that of the $30 trillion being inherited in the next 30 to 40 years, 70% will be lost to state battles.

However, if thought out and planned properly, it can benefit all the involved parties and stakeholders. For most people, there are three main options that they can opt for: to retain the property, to sell it or to rent it out.

Retaining:

For emotional reasons, people often hesitate to sell the inherited house. This is a good option to consider if you are currently renting or have a sibling or close relative that might want to move in the inherited house. However, the financial and physical burdens of the house may eventually outweigh the emotional reasons.

For instance, you may have to pay off the remaining mortgage amount if there is any. Maintenance and upkeep, utilities are also additional costs to bear in mind. You may even find yourself wondering on how to take care of the personal belongings such as furniture, electronics, et cetera of the deceased.

Retaining the property has its benefits as well as its drawbacks. For this reason, this option is best considered after mutual discussion and agreement of the people involved.

Selling:

This is a good option to consider if you or your siblings are looking for immediate financial gains.

Moreover, this saves you from the expense on maintenance and even some taxes. A gain in wealth tax is only applicable to you on the amount the house was purchased on. Any amount appreciated over the purchase value will be tax-free.

Sometimes people hesitate while selling if there are damages to the house that need repairs. They have difficulty finding a suitable price from reliable real estate dealers. If you’re looking for real estate dealers that facilitate the selling process of inherited homes, you may want to consult dealers that offer a no-obligation offer, as well.

Renting:

Many people consider this option as a means of generating extra earning. People often rent out inherited homes to those on vacation. This enables them to retain the home and use it for special occasions, like holidays and family reunions.

However, this is only a feasible option if you live close to the property. You will also need to think about insurance coverage and legal liabilities of the rented home.

Renting provides a tax benefit as well since the depreciated amount of the property will reduce the overall taxable amount. However, should you choose to sell after renting a house, the depreciated amount will be payable to the Internal Revenue Service. This also means that the gains in wealth exclusion will not be applicable to you since the house is not your primary residence.

Conclusion:

Whether you choose to retain, sell or rent the property, it is definitely a daunting task. To make an informed decision is to make the best decision.

If you’re looking to sell an inherited house in Jacksonville FL, whether it’s in pristine condition or requires repairs, you deserve to find a dealer that offers you a smooth process and the best possible offer. For dealers that specialize in selling inherited houses in Jacksonville, FL, call us at (904)513-0229!

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