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Do you need more time to sell your primary home to realize the benefits of the $500,000 exclusion?
When a homeowner plans on converting their residence to a rental, they should consider this tax-saving strategy. Our tax preparers near me highly recommend it!
Sell Your Home to Your S-Corporation
Sell their home to their S corporation before converting it to a rental property.
When a homeowner plans on converting their residence into a rental property, there are considerable tax savings by first selling the home to their S corporation.
The owner can avoid taxes on the sale with the home-sale exclusion of $250,000 gain ($500,000 if married).
Additionally, you increase the rental property’s depreciable basis, providing greater depreciation deductions for the property.
If you are interested in exploring this strategy or you would like to see how much you will save with our tax advisory services, please book your free assessment here.