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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: calculating basis on home Date: 12/20/2013 6:57 PM
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I'm actually working on an analysis on my return if I kept the home as a rental. One of the benefits of selling today is the tax ememption but if I hold on for long enough, I'll lose that exemption.

I offer off the bat a caveat. I haven't done much thinking through on this since I wouldn't be a landlord again--and I had great tenants--on a bet.

I've got this feeling banging around in my head that you're overemphasizing tax analysis if you're trying to choose between selling the property and becoming a rental real estate investor. If this is a long-term proposition the exclusion of gain from sale of a personal residence is moot, so move on and stop thinking about it. There are other avenues available for deferring tax recognition of the gain on rental properties if you decide it's time to look at other income-producing property. Play them out long enough (until your dirt nap) and all the gain magically disappears for your heirs.

Rule Your Retirement Home Fool
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