Walaby wrote:
jorbill2or wrote:
I think the discussion was on a rental home not a primary and turning a primary into a rental?
No, OP clearly was talking about a primary residence, and what to do with that (sell or possibly rent).
Mike
The conversation then meandered into how turning your home into a rental could lead to very real, and very expensive, tax consequences. Currently you get to keep the first $250,0000 ($500,000 if your are married) of appreciation in your residence tax free. Make that home a rental and you put that appreciation at risk of taxation. with federal capital tax rates of up to 20 percent, that could conceivably result in a $100,000 tax bill, not pocket change for most people.
