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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.
Buying a Home to Rent to Them. Yet another possibility is to buy a home for your parents, then rent it back to them at a cost they can afford. This may be a solution if the parents canât qualify for the mortgage but can handle the cost of the payments, or if they wish to pay some or all of their own housing expenses.uying a Home to Rent to Them. Yet another possibility is to buy a home for your parents, then rent it back to them at a cost they can afford. This may be a solution if the parents canât qualify for the mortgage but can handle the cost of the payments, or if they wish to pay some or all of their own housing expenses.