Owner occupied turning into rental

[Grant Hwang]

I have a SFH that I use to live in. I will be moving out but I will rent the house out. My question is, how is this going to work with depreciation on taxes?

I owned and lived in it for about 2 years. Moving to another SFH but want to keep this house as a rental.

Anything else I should know when moving out? Do I need to refi?

[Mitch Kronowit]

If I remember correctly, the depreciation begins when the property is placed into service as a rental. However, I don't think you can use it's current market value as a baseline, especially if it's appreciated in value since you bought it for your own use. I think you have to base your depreciation on your purchase price.

Don't worry about refinancing, unless you have to. You got an honest owner-occupied loan when you purchased the property and actually lived there for a couple of years.