You may or may not be thinking of converting your personal home to a rental property, but if you are, please discuss this with me before you take action.
You likely have some planning opportunities available on this conversion of your home to a rental that can improve the rental profits.
One possible strategy is to create an S corporation and then sell your home to the S corporation, which would then operate as the landlord for the property. With this strategy:
You avoid taxes by using the home-sale profit exclusion of up to $250,000 ($500,000 for joint returns).
You create an increase in your rental property’s depreciable basis that generates an increase in depreciation deductions.
I can also help you examine your projected financial results of this or other possible rentals so you can make sure that the investments have the attributes necessary to give you the results you project.
P.S. If you are considering acquiring a rental property or converting your home to a rental, please contact my office at 973-339-7773 and set up a meeting with me so I can help you.