Inherited property & HIGH cost of RE Taxes My parents are in their 70’s receiving SS benefits and a non gov. pension and own a SFH, with no mortgage.
Several years ago, they inherited my grandmother’s SFH. This property also has no mortgage, is in good condition, and has remained unoccupied. Since this is not their primary residence, it costs $12,000 a year in real estate taxes! They do get an exemption on RE taxes for their primary home.
I help with expenses where I can, but live out of state.
My parents are just not ready to sell this inherited property and are hesitant to rent to someone at full market, as they fear this would affect their SS/pension income.
I suggested renting the property to a local relative for $1000 a month, which would just cover the cost of $12,000 RE taxes and make no profit.
Would this still affect their SS benefits and pension?
What are the tax implications? |