Need advice about depreciation

[Dennis Nemitz]

I just purchased a townhouse for my primary residence. I have owned my current home for 30 years, and we are having a bit of trouble selling it because of our emotional attachment to it. So we are thinking about renting it out instead of selling it. What I need advice on is, when we do sell it will we be taxed on the amount we depreciate it from our purchase price, or on the homes value when we turned it into an income property?

[Greg Scott]

Dennis:

I'd encourage you not to rent out the property.  If you have such a strong emotional connection to the place, how will you feel if a tenant isn't taking care of it the way you would like them to?    The situation has the potential to become very ugly.

In any event, if you do decide to rent, talk to a CPA. They can answer your question easily and help you deduct appropriate expenses.

Good luck