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We inherited a house at my mother's death. We decide to rent the house for two years but now we want to sell it. Is the basis of the property considered the fair market value when we took ownership? Is the property now considered rental?
ANSWER
Expert Mark Anderson's Answer:
You received a step up in basis when you inherited the home. You should have depreciated the home when you rented the property so your basis would the fair market value when you took ownership less the depreciation plus any improvements. To figure the gain you take the sales prices less expenses of the sale less your basis. I would check with your CPA to help you figure the gain. I hope this answers your question.
