I am married and live in a wonderful home. I have recently inherited another house, and now I wonder if I should lease it or sell it? It seems a matter of tax implications. Please advise!:confused: Daniela

I'm not an a tax attorney but from what I understand the value tax wise to you would be the fair market value of the house at the time of the persons death. Lets say for ex. 300,000. And you sold it for 325000. You taxable income would be 25000

First, you must determine if the second house is suitable for renting. A house that is extremely large or qualifies as a high-end house is NOT a candidate for rental property.

Second, you need to determine if you have the personality for being a landlord. Many people do not! I speak from experience on this issue.

Third, your income level may dictate that renting the property is NOT a great option for you. Persons with net incomes in excess of $150,000 cannot deduct the passive losses generated from rental property.

I STRONGLY recommend you speak with your tax professional/accountant about this before you make any decisions.