Transfer personal home to rental business for depreciation?

[Jacob Sampson]

Any thoughts on pro's and con's of selling my personal residence to my rental business in order to capture depreciation?  Is that a IRS red flag?

[Wayne Brooks]

Bad idea, outside of the "smell test".....depreciation is just basically an interest free loan, if you don't 1031, since you pay back 25% on all those deductions when you sell.  More importantly, you lose your cap gains exemption from it being your primary residence.