Tax implications of converting primary residence to rental

[Jiri Vetyska]

Can somebody clarify the tax implications or advantages of converting a primary residence to a rental and what should be paid attention to early on so as not to pay too much in taxes at a later sale?

Specifically if I buy a house that I spend a lot of money renovating while living there and then at some point later I decide to rent it out. How do I enter the property value for the depreciation purpose? The original at purchase, estimated at time of transfer? Anything to do about the expenses for renovation that I couldn't deduct in earlier years because it was not investment?

Thanks in advance!