If you inherited property in New York, you don’t always have to maintain ownership of this building. Some people prefer to sell inherited properties and pocket any profit. With that in mind, check out these tips to help you sell an inherited home.
Getting on the same page with property owners
In movies and on television, you’ve watched inherited property passed to individuals. That’s not how estates always go in real life. Sometimes, multiple beneficiaries can own a property or properties together. As you can imagine, sharing ownership of a property complicates the selling process. All beneficiaries must agree with your decision to sell before a property can be put up for sale.
Learning about fair property value
When taking over real estate, paying property taxes can become a beneficiary’s main concern. To prevent a huge tax bill after selling an inherited home, keep in mind you’re only taxed on proceeds from this sale.
Keeping an eye on capital gains taxes
After you sell an inherited home, you’re not done paying taxes yet. That’s because of the capital gains tax. If you sell your asset after owning it for less than a year, your taxes will be more than if you held onto the property for a longer period.
In closing, inheriting property can be a double-edged sword. Inheriting a property is great if you want the home or rent it out for additional income. However, taxes and beneficiary complications can make inheriting a home too much for some people to handle.