Updated over 1 year ago on . Most recent reply
Primary to rental depreciation
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:
- Can I deduct rental depreciation from my W2 income? Both me and my spouse are salaried employees with W2 incomes.
- Based on the above numbers, what will be the basis for rental depreciation?
- Can I create an LLC and transfer the house to the LLC without changing my current mortgage rate?
- If I create an LLC, can I still deduct rental depreciation from our joint W2 income?