getting a part of my inhearitence in the form of managing a rental property
hello i'm in the process of getting a part of my inheritance my father is selling a business and splitting it by potentially buying some rental properties and having his kids (me being one of 3) manage them and keeping a majority of the profits, i have never been in this kind of work (I've been in retail most of my working life) so i am not sure what it all entails and what ill need to look into being a manager of said rental property. would like any recommendations on what i need to know before the purchase takes place
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#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
Make sure none of it goes in your name before he passes or you’ll get screwed on taxes. I don’t know if your dad can make any legal contract for you to get at his passing that he can’t change. Y(ou do a bunch of work and then get fired.)
It sounds more like a pre-passing gift? You’ll have to figure out if it becomes “regular income” for you instead of capital gains income for him. Thsi could result in nearly a doubling of taxes paid by the family. Especially if you have to pay both sides of social security.
It sucks to “get a lawyer involved” but it’s almost more to avoid a big tax mistake than a “I think you’re trying to screw me.” Situation.