Tenant is interested in purchasing my house
Hello. I inherited a house from my parents and the tenant loves it and is interested in purchasing. It's in a lake community; however, the community has everything from 30k A-frame houses to 600k houses on the lake and everything in between. This is a modest home for the area. I'm guessing somewhere between 125-150. I've been looking at a lot of sold and listed houses out there. The tenant is basically just waiting on me to give them a price. After my parents died and the estate settled, everyone got their piece of the pie. I'd really prefer not to have to pay realtor fees. I have a realtor that I work with a lot. I plan on 1031 exchanging this house to a 6-10 unit multi. Any recommendations on finding FMV without enlisting a realtor? Is it okay to say to my realtor, "Hey, help me get this deal done and you'll make your money when we buy the large multi?" Any help is greatly appreciated.
Most Popular Reply
Ian Mathieu You don't need to do a 1031 Exchange. Save your money and hassle.
The basis of property acquired from a decedent is generally the property's fair mkt value at time of death. It's called the primary valuation date. The holding period for the property is deemed long term. If the house is worth $125k at death, then that is your basis. If you sell for $125k then there is no gain on which to be taxed. If you sell for $150k, your longterm cap gain is $25k, remember the beneficiary holding period is deemed long term. I think the IRS Section 1022 covers this, go to irs.gov and search inherited property.
You do not need a realtor. Use a title attorney to close the deal and move on.