Capital gains on inherited home used as rental

[brugmansia]

We inherited a home and made improvements to it. Having a hard time selling it right now and want to rent it out. Am wondering about capital gains on the home when we do sell it after using it for income property. Would it just be best to lower the price considerable for a sale?

 

[Greta]

Is this house your principal private residence at the moment? If not, it won't matter for CGT purposes whether it is rented or not - CGT will be payable anyway, but only on the increase in value between probate valuation (plus cost of improvements - so make sure you keep the receipts!) and sale price. If the price doesn't increase, there won't be any CGT to pay. If the price does eventually increase and you make a capital gain on sale - yes, you'll pay CGT but the rest of the gain will be yours And in the meantime the house will hopefully provide you with some rental income.

So I don't see a point in selling just to avoid CGT. You should sell if you have a better use for this money. If you don't, you may as well keep it and get a rental income stream.