Our father passed away 2 weeks ago and my brother is the executor. There are 3 of us and I live in another state. My brothers (and our father )reside in California. Our brother, who is the executor, is rushing us to empty the house and get it rented in the next month because he talked to the tax attorney, who said that we need to get it rented by the end of the year so we can get a tax write-off. My older brother and I want to take our time emptying the house and sorting through 64 years of accumulation. We then want to remodel and sell the house. (We are also grieving the loss of our dad. )The 2 of us do not understand what the advantage would be to rent the house vs. just selling it when it is ready to be sold. I guess that is the question we need to have answered.

You and your other brother need to tell your executor brother to be reasonable about clearing out the house. Rushing this after two weeks is insane. 'Tax write off?' All I can see is a way to offset property taxes and utilities while it is vacant. 64 years of accumulation will take weeks to sort through (at least that was my case). Renting is always problematic, and if the house needs work, the tenants can be extra difficult. Selling next summer makes much more sense anyway. Spring is the time buyers with children start looking, because they want to do it on school vacation, and is when most people do anyway, and properties look best then. Renting is usually year to year, especially a house - tenants don't want a month to month in a house. So the year would be up at a bad time for selling. There are countless reasons why it's a bad idea to rent. Your brother (or you!) needs to talk to some real estate brokers about the value of fixing up or selling as is.

The executor does have the right to rent out the house, but it's unfair to make a decision like this without the other 2. If there is some CA inheritance tax code this falls under to make it economically feasible, I don't know what it is. I don't believe it.

Hello pam:

the tax attorney, who said that we need to get it rented by the end of the year so we can get a tax write-off. Now, I'm just an exconvict you met on the internet, but I don't believe there is ANY right off available to ANY of you.

You have to have an EXPENSE before you can write it off, and the only expense you're going to have is improving the house, and that's only deductible as a percentage of each of your incomes... Unless you spend a LOT of money fixing it up, and/or your brothers and sisters are relatively poor, the actual amount you'll be able to write off (deduct) will be NEGLIGIBLE...

Rushing to get tenants NEVER works. Forcing siblings to do what ONE sibling wants NEVER works.. I think the opposing siblings need their own lawyer..

My advice will be tempered by the advice of our own resident real estate attorney. She'll be along shortly, and she knows. I'm sure she'll want to know the particular statute the tax attorney is referring to so we/she can look it up. Maybe you can ask your brother to supply you with it.

excon

Pst: Excon, we know the state:


... My brothers (and our father )reside in California. ...

I too have serious doubts about the idea that a "tax write-off" for renting the property will be available if it has been rented by the end of the year, but not if it's rented January 2nd. OP should insist upon an explanation.

I think the deal here is that currently it is a residential property. If it is rented, it becomes an income producer. That means any expenses can be written off against the income. But I doubt if there is enough to be made here to make it imperative. How large is the estate? There probably is not much tax liability to need a write off against.

Yes, and what 2013 expenses would the estate be able to write off, anyway? Hard to imagine that they would total that large an amount.