Tax as ordinary income?


P

Patch

My Wife inherited a small house from her Mother. We rented it out for 5
years, declaring the income on our taxes. We sold the place a few months
ago, my question, do we declare the selling price as ordinary income?

Thanks
 
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P

Paul

Patch said:
My Wife inherited a small house from her Mother. We rented it out for 5
years, declaring the income on our taxes. We sold the place a few months
ago, my question, do we declare the selling price as ordinary income?

You will have a capital gain on the sale that will be taxed. Your gain is
your inherited basis, less depreciation, plus any improvements you made, and
sales costs subtracted from the sales price.
 

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