Primary to rental depreciation

[Hiten Java]

Hi all,

Had some questions about converting my current primary house to rental property.

Details:

• 2018 - Primary home since 2018. As per county records, land value was $190k and structure value was $474k, total value being $664k. Purchased for $850k.
• 2021 - Remodeling cost $32k
• 2024 - Moved to a different house. Converted from primary home to rental. As per county records, land value was $303k and structure value was $649k, total value being $952k. Redfin Estimate is approximately $1.35m.

Questions:

1. Can I deduct rental depreciation from my W2 income? Both me and my spouse are salaried employees with W2 incomes.
2. Based on the above numbers, what will be the basis for rental depreciation?
3. Can I create an LLC and transfer the house to the LLC without changing my current mortgage rate?
4. If I create an LLC, can I still deduct rental depreciation from our joint W2 income?