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Updated over 10 years ago on . Most recent reply

User Stats

96
Posts
29
Votes
Alan Russell
  • Investor
  • New Bern, NC
29
Votes |
96
Posts

Converting home to rental

Alan Russell
  • Investor
  • New Bern, NC
Posted

I need to understand what happens to the equity (for tax purposes) if I convert a single family home to a rental property.  Would this convert at a current tax cost basis?  For instance if I purchased a home for 125K and lived in it for 5 years then it appraised at 225K would my cost basis for tax purposes be 225K or 125K?

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