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Calvin and Katrina inherited Calvin’s grandmother’s (Eliza Rose) primary residence on 1/2/2021 (date of Eliza’s death) when the property’s (including the land, building, fixtures, and appliances) fair market value was $300,000. Eliza’s residence is located at 100 Woodlawn Ave., Linden, New Jersey 08001. Eliza Rose purchased the property on 11/30/1992 for $110,000.

Calvin and Katrina immediately decided to use Grandma Eliza’s home as rental property. They leased the property to tenants for $2,000 per month, beginning February 1, 2021. When they moved in, the tenants paid the required a refundable security deposit of $3,000 plus February’s rent and thereafter paid the monthly rent on time every month. The tenants were responsible for their own utilities. The Rose’s maintained the lawn and garden and snow removal. No Form 1099-s were required to be filed and none were filed.