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In this episode, I break down everything you need to know about renting out your primary residence. From tax implications and the capital gains exclusion to insurance adjustments and cash-on-equity analyses, I cover the essential steps to make informed decisions. Whether you’re considering converting your home into a rental or selling it for a tax-free profit, this episode is packed with actionable advice to maximize your wealth-building potential.
Timestamps:
00:00:00 Intro: Renting out your primary residence
00:01:07 The 2-out-of-5-year rule for capital gains exclusion
00:02:48 Why selling for tax-free cash may be better than renting
00:03:30 Adjusting your insurance before renting out your home
00:04:19 Financing considerations before converting to a rental
00:05:22 Cash-on-equity analysis: Is renting worth it?
00:06:05 Depreciation recapture and cost basis considerations
00:07:03 Converting a rental into a primary residence: Tax strategies
00:08:48 Why tax-free is better than tax-deferred gains
00:09:32 Emotional attachment vs. investment perspective
Want me to answer your questions live? Come to my next Ask Me Anything Q&A:
► https://taxstrategy365.com/pod-ama
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*None of this is meant to be specific investment advice, it's for entertainment purposes only.
