Inheriting a house in St. Augustine automatically kicks off a process that can be fraught with emotions. It is very possible you’re receiving this property as a result of the death of a loved one and the financial decisions that come with inheriting the property can be stressful and confusing.
Upon the death of a family member, it is usually the case where another member suddenly becomes the owner of the property. For some, it could be a family home they grew up in, which means the property comes with a lot of memories, both good and bad. While for others, it may not be the property they grew in up but in either case, it could be geographically far from their current location.
The best way to move forward is knowing your options and getting yourself educated of the inheritance process. Assessing the financial consequences of your choice, and seeking expert assistance in navigating the tax and every legal requirement.
Inheriting a St. Augustine home comes with lots of decisions that fall to the beneficiary to make, such as to decide whether the property can be kept as a house, a rental home or sold to another owner. Or in a scenario where the property was left to multiple members of a family, there will be more than one person to make the decision which is a call to more problems and potentially, the opportunity to share financial gains from the property. Many times people search for phrases like Sell my house fast Jacksonville, fl, or similar, to get finished with the process very quickly.
Most of the time, the current state of the property at the time of inheritance may help determine some decisions taken.
Either way, you have three main options to consider when you inherit a house, you either sell it, rent it out and have the responsibility of a landlord, or move in and live there. Knowing all of these, you still need to decide which will serve a greater purpose in your case. Jax Cash Buyers will help you decide. Let’s have a bit of knowledge on taxes before we dig into the three options and their pros and cons.
Tax Considerations to Ponder
The last thing anyone would want to think about after losing their parents is taxes. But like any financial consideration, taxes have to be part of the conversation. Thankfully, the federal government doesn’t tax inheritances, and just a handful of states do. So whether you inherit a car, cash or house from your parents, you may not owe anything on your next tax return. Florida residents have no need to worry about a state estate or inheritance tax which is a tax levied on people who either own a property in the state where they died (estate tax) or inherit from a resident of a state (inheritance).
What you need to know is that there could be tax consequences that may arise from how you handle your inherited property. The tax implications may depend on the size of the home or estate, whether you decide to sell or rent out the home, and whether your parents have mortgage or lien on the property.
Even if you want to sell house fast jacksonville, fl, it is advised to consult a Certified Public Accountant (CPA) in order to understand the various tax consequences that come with every option you consider. Since laws vary by state and each situation is highly unique, the only way to get accurate advice is speaking with s professional in your area.
Though Florida has no inheritance tax, in case you live in Florida and inherited a property from someone who lives in one of those states with an inheritance tax, you may get a tax bill for the property you inherited from someone who lived there. The only possibility that you won’t be taxed is if you were married to the deceased and some state exempt small inheritances. Either way, it’s still a tax bill that you may not be expecting to pay.
Let’s now move to our three options
1. Selling the Home
As mentioned before, we have three main options to consider when inheriting a St. Augustine home. The first and most used option is selling the house and moving on with your normal life activities. Since you’ll be free from the stress of inheritance. This is usually considered the “leanest” and most beneficial option for all parties involved. And could as well be the most profitable. If the property was bought decades ago, it is possible the property value has grown tremendously over time.
2. Renting the Home
The second most popular option is renting out the house. Some people may not find it appropriate to lose what was given to them by their parents. This option gives you the chance to keep the property and yet live where you are. Considering this can be a great way to retain ownership a property you are about and as well create a boost to your income. You may not have the dream of becoming a landlord but the option can be of help in achieving your dream of passive income. Each time you renew a lease and or get a new tenant, you’ll likely increase the rent. This will help score some monthly income you can count on once you reach retirement. As an added benefit, it is possible to score some tax benefits in the form of depreciation. This highly depends on your tax situation so be sure to consult an accountant before being too excited.
3. Moving In
This is mostly the last option to consider. If you can’t find yourself selling or becoming a landlord, this will obviously serve as the best option for you. This option can be highly advantageous if the home is entirely debt free. No mortgage to worry about, you just need to worry about keeping up with property taxes, upkeep, and insurance. If you’ve always been part of your parent’s affairs, it will be easier for you to understand these ongoing expenses. If not, it is advisable to get a general idea of the average monthly expense before making the decision of moving in.
In case the home as occupied by your parents for a long time, you may find the necessity to create a budget for repairs. Before moving in, check if the plumbing is in good order, if the roof needs repairs, or if there’s a need for new floors or any other updates. In case you have siblings, think of a strategy of buying them off their shares. You can get a lawyer or a CPA to determine the best possible way to go about this.
The whole process of inheriting a home in St. Augustine can be stressful if you fail to prepare. That’s why Jax Cash Buyers is there to help you go through every step. We can guide you and educate you on the outcome of every step so you will be able to make informed decisions. Get to us and have the best out of your inherited home.