A brother and sister inherited their parents' rental duplex, valued at $340,000, after their mother died earlier this year. He wants to keep the property and manage both units himself to save on property management costs. She does not want to be a landlord and would rather sell. Owning a rental with a co-owner who has no interest in managing it creates friction even among close family. Maintenance decisions, tenant issues, capital improvements, rent increases and the timing of any sale all require agreement. Because the duplex was inherited, the siblings' federal tax basis is generally the property's fair market value at their mother's date of death rather than what their parents originally paid. If it was worth $340,000 when they inherited it and sells for roughly that amount soon after, there may be relatively little capital gain from post-inheritance appreciation. The calculation can get more complicated because rental property is subject to depreciation and other basis adjustments. The $250,000 or $500,000 primary residence capital-gains exclusion would not apply here. At a $340,000 sale price with equal ownership, each sibling's gross share would be $170,000 before commissions, closing costs, outstanding debt and taxes. Selling also ends whatever rental income the property has been producing, while keeping it means ongoing exposure to one building in one local market. The siblings say the duplex goes on the market next month, after which each can decide independently what to do with their share.