AboutRichard Fritzler Expertise I am in the business of tax planning for business owners. Our company helps business owners structure so that they can be reduce the taxes that they owe, making them far more profitable.
Experience Since 1986 I have been helping successful business owners reduce taxes, protect assets, and limit their liability. The company is Owelesstax, incorporated at www.owelesstax.com
Organizations National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association
The Business Owners Institute
Publications Contributing author to "The Corporate Standard Newsletter".
I am also a writer for an email newsletter about business
Googlegroups/Successfulbusiness
I am also an Expert in the areas of Tax Law, Retirement Planning, and Estate tax issues.
Expert: Richard Fritzler Date: 7/19/2007 Subject: inherited house
Question Do to an inheritance I now jointly own a Santa Barbara, California house with my two brothers, one of which is currently living in the house. I live in Oregon, the other brother lives in Washington. The other two of us go down as often as we can to help remodle it. What is the best way to handle this house tax wise: sell it,or rent it first to make some money off of it and then sell it. Is there a tax benefit if I live there, how long to I have to live there, does my brother living there count as me living there too since it is jointly owned. What is the best way to proceed with this house to pay out the smallest amount of taxes.
Thanks
Answer All of the wranglings that you are considering are moot. Since you inherited property you already have a stepped up basis. If you sell right now you would not have a federal tax. You may still have state taxes due.
As to renting first, I can't make a recommendation because, that has to be based upon market issues. Can you collect enough rent to make keeping it worth while.
This is just scratching the surface of the issues, so if you want to call me, I'd discuss some of the other issues that you didn't ask about.
Richard Fritzler
www.owelesstax.com
phone 800 590-6612
