Health Care

Health Care

How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.

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Valued Pioneer
Posts: 5
Registered: ‎04-08-2017

Converting a home to a rental property

Converting a home to a rental property

We moved from our old home to a new one out of state. We converted the old home to a rental property on January 1, 2016.

 

What do we use as basis for the new rental (old home).

      Should we use what we paid 17 years ago or the current valuation of the property.

Neighbor
Posts: 69
Registered: ‎02-28-2016

Re: Converting a home to a rental property

You must use an estimate of the property value on the date the property was offered for rent.

Valued Pioneer
Posts: 5
Registered: ‎04-08-2017

Re: Converting a home to a rental property

What is a valid estimate of the property value...would the Tax valuation on the tax bill suffice?

Neighbor
Posts: 69
Registered: ‎02-28-2016

Re: Converting a home to a rental property

[ Edited ]

Without a professional appraisal, you must rely on other sources that may not be as precise. If your recent tax bill is based on a recent assessment it could be used. You may also research similar home sales in your area. You may want to review this thread.

http://community.hrblock.com/t5/All-Things-Tax/Calculating-Basis-for-Property/m-p/91104#M32177