Updated almost 12 years ago on . Most recent reply
Converting home to rental
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?