Leasing out your S&B home?
Hello friends! We want to go full time but don't want to give up the S&B yet. It's a nice older home (70's) on a lake just North of Milwaukee. We believe we should be able to get top dollar for a l...
Forum Discussion
bigdogger wrote:campigloo wrote:Once you do that, you may lose the ability to take advantage of the IRS rule that allows up to a $500,000 per couple gain on your personal residence to be tax free. Make it a rental property, start depreciating and when you go to sell it you could face literally $100,000s in tax liability, especially if they have owned the home since the 70s. Probably bought it for less than $100,000 and it now is probably worth at least 4 or 5 times that. Have a tax and estate specialist go over all the pros and cons.
P.S. Check into putting the house into a LLC. Not only will it legally protect you, you may be able to take depreciation.
Value the house at 100,000 today, take 10 years depreciation, have it valued at 1,000,000 in ten years? Sign me up!
