Anyone know how I can take advantage of tax free gains on a personal residence when converting to a rental? I live in a property now that I will be deeding to my LLC for a rental. Can I get an appraisal to take advantage of the higher depreciable base and get the tax break in the difference?

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You can’t.

Sell within 3 years to keep the “2 in the last 5 years” homestead exemption.

Otherwise, you may be able to do a 1031 exchange, but that’s a tax deferral, not an exemption.

Not looking to sell for another property as it’s a very rentable location and don’t want to deal with realtor fees

What’s your goal with the house? Keep it as a rental until you pass or eventually sell it? Also are you just trying to get cash out?

I’m drawing a blank on how to unlock additional basis without spending money on the home. Most of my clients will do a cost segregation study to accelerate existing basis OR cash out refi and get another property to get additional basis.

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