I found my dad in his house August 27, 2009. I inherited
a single family residence unencumbered that went into probate. As the executor, I had a large amount of debt that I paid off by repairing the property
and renting it out.
Probate closed November 2011; I continued to rent the property out.
The cost basis for the property in the probate appraisal was $275,000.
Now, I'm considering fixing the property up to sell in order to buy several fourplexes.
I am concerned about capital gains
. The property is close to where I work, so in theory I could live in it.
However, the memories of finding him are making it difficult to be there.
I know the rule is 2 out of 5 years, but doesn't my dad living in the house count for part of that time or is it just the time I live in the house? Is there any change in the 2 out of 5 year rule for properties from inheritance
I am reluctant to do a 1031 exchange because I'm not sure I could identify several duplexes in 45 days to purchase.