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If you rent your inherited house, your capital gains tax is higher. If you inherit a house that you don't want to live in, you can sell the house or rent it out. If the market's flat right in your area, renting may be the better financial option.It will have an effect on your taxes, though, so take that into account when choosing your options.eassessment. Whether you rent or live in the house, you may see higher property taxes than the former owner. California law limits increases in assessed value to 2 percent a year. When the house changes hands, it gets reassessed to its real worth.
If you want to sell a rental property, the first issue is does the tenant have a lease? Letâs say there is a lease and the tenant has eight months remaining. They cannot be evicted before the end of their lease, just because you want to sell. You can sell, but the buyer must agree to let the tenant stay. In addition, if the tenant has the right to renew their lease, then you and any buyer will have to honour that as well. If the tenant is on a monthly tenancy the only way to evict them is if the buyer is moving into the house on closing. Therefore, you must sign an agreement with a buyer before you can start the eviction process.