Want to sell a property that was given to me

[Robert Wood]

I was given a property kinda as a inheritance.was my mothers home  but was in my aunts name and signed over to me from my aunt. I put a lot of work in it and am ready to sell and start investing but I’m trying to avoid getting taxed on the property.Actually have no idea how it would be taxed 

[Rick Albert]

Double check with a tax adviser but here are my initial thoughts:

1. You may not be taxed on it. Sometimes inheriting properties are not taxed based on the value of when you inherited it. For example, if it is worth $200,000 today and you sell it two years later for $250,000, then it is the $50K that would be taxed. Because you put work into it, talk to a tax advisor about using that as a deduction towards the taxable income.

2. Why not turn this into a rental? You can do a cash out refi and then use that money to buy others. But this way you can get a tenant in there now and then you can do a cash out for as much money as it financially makes sense to do.

3. Talk to a tax adviser about using it as a rental and then sell it using a 1031 exchange. The length of time it has to be a rental in order to do a 1031 isn't defined last I checked but it is all about the intention.