I purchased a home about 5 years ago for $365,000 and today the home is worth $650,000. I'm buying another home and renting out this one. Will my depreciation be based on the purchase price or what it is worth now?

The amount you can write off phases out if your AGI is above $100K and goes to zero once you hit $150K.If you qualify as a Real Estate Professional Status (REPS) then any passive loss can offset any active income.  

@Darren Maloney If you are obtaining REP status, cost segregation and bonus depreciation could be a great tax savings benefit to you.

Short-term rental loophole and REPS status are the main paths to follow! 

I am going to accept my newbie status and ask a silly question.

The agent told me that Tower Hill (the insurance company) can’t adjust the occupancy status and that I’d have to rewrite a new policy for occupancy.

The agent told me that Tower Hill (the insurance company) can’t adjust the occupancy status and that I’d have to rewrite a new policy for occupancy.

They're passive losses but I'm tracking my hours to see if I qualify for Real Estate Professional Status. 

I would never deny anyone due to their race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, disability or (new one for Colorado) source of income.

I maintain my Superhost status on Airbnb every year and the properties consistently get 5 star reviews, and my places stay booked.So, for me, automation has been critical to my success.