If you’ve inherited property or stand to inherit property in the future it’s important to understand the logistics and process as there are some serious things to consider.
Inheriting Property Has Its Benefits and Disadvantages
On the surface, you might be happy with the inheritance considering the potential value of the property. However, in many cases you may be acquiring a property that requires many repairs to bring it up to code due to decades-long wear and tear. This means you will need to decide what you wish to do as you could actually need to spend money that you’re not prepared to spend.
Renting it out your property can bring in regular income, but if major or expensive repairs are necessary then you would have to shell out this money beforehand. For many people, this is not a realistic solution.
The only other option is to sell the house. Even this decision is not easy, as you (and other siblings if you have any) have to decide how to sell it. You can either find someone to buy it as is or decide to do some renovations or upgrades to get a better offer and sell it faster. You can keep in touch with experts like us to make this process easier for you.
What You Need To Consider When You Sell An Inherited House in Las Vegas
- Probate Process
Any piece of inherited property in Las Vegas has to go through a probate process. This is to check whether the will is valid and to distribute the contents of the estate to all beneficiaries. The process itself will take at least 120 days to about half a year so that the court can notify any creditors or check any claims that have been made against the estate.
Fortunately, there are ways to make this process faster (if the value is below $200,000, for example) or an expert can facilitate the sale of the property even before the probate process is finished.
In fact, hiring professionals can make the entire procedure easier and faster for you vs needing to take the time and effort to figure out what to do on your own.
- Conflict With Other Heirs
The tricky part of any inheritance is when it has to be shared with other parties. It is quite common to have different opinions or ideas on what to do with the property. In fact, going through the usual lengthy process of fixing up a house before selling or renovating it to rent it out just makes things complicated for everyone.
One of the easiest solutions is to just sell the property for cash (there are many professionals like us who do!) and divide the proceeds fairly among everyone. This allows everyone to receive their share and make the decision on what to do with their inheritance.
- Tax Responsibilities
Inheriting a piece of property normally requires you and other heirs to pay some taxes (capital gains tax). The great thing in Las Vegas is that you can benefit from what is called a “step-up in basis“. This means taxes you have to pay are based on the property’s value when it was sold minus the value when the owner passed away.
If it sells for lower than the value at the time of the death, you can report it as a loss (although there are limits as to how you can write off yearly). If the house is sold at the same amount, then you have no tax liabilities. You only start to pay taxes on any increase in property value at the time of the sale.
When it comes to determining taxes you have to pay on a Las Vegas property, it is always best to contact a professional to advise you; you do not want to owe the IRS any money and it’s important to get clarification on everything before making any decisions. In fact, at any part of the process of selling your inherited property, you can benefit from getting an expert to guide you. Give us a call and let us tell you how you can sell us your inherited house for cash, as-is and in a short amount of time.
(image credit americanfinance.net)