Convert Primary Residence To Rental - Appreciation
I live in New Jersey. I currently own a home that I have lived in for 10 years and has appreciated by about $95K. I recently started a new job about 50 miles away, so I am considering renting out my home and renting or buying a home closer to work. I have some questions:
1) Can I avoid being taxed on the appreciation of the home while I lived in it? Or would I have to sell it in two years to get the capital gains tax-free? I saw it mentioned in another post that I can get the property appraised at the time I convert it to a rental to establish a rental property cost basis - I would like to confirm that this is applicable to my situation.
2) (if question #1 is possible) I am not sure where I will want to live next, so am considering renting a room closer to work for several months before making a longer term purchase or lease commitment. To cover my current home costs, I would rent out 1/2 of my house to a friend. When I decide to move and rent out my whole house, would I have to get it reappraised when converting it to a full rental?
Thanks,
Ralph