RE: right time to invest or not?

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(07-02-2019, 09:55 AM)ChadR Wrote: You said this property is down 100k since the peak. How much profit do you have in the house now? If it was your primary residence for 2 of the past 5 years, you can have a tax exempt gain of up to $500k if you're married. If you turn it into a rental, you can potentially kiss all that tax free gain good bye. If you're sitting on a big gain, it's hard to lose that.

If I was you, and there is a nice size gain in the house, sell it and get the tax free gain. If you still want a rental house, buy one and you've got the higher depreciation basis for the new rental house.

That's a fair statement, I did not consider the taxes. But I don't plan to sell my first home either a long time. Plus I can claim depreciation and fixture costs from taxes every year.

Can you please explain what you mean by "If you still want a rental house, buy one and you've got the higher depreciation basis for the new rental house."