Hello,
While my primary residence sits on the market to sell, we rented it out to a tenant. So far so good.
Since we lived in it for at least 2 of the last 5 years, when it sells we'll be able to get the $500,000 property exclusion as per this IRS advisory page:
https://www.irs.gov/faqs/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/prope...
But, we're also depreciating the value of the home while it's a rental unit. And I cannot figure out whether or not and how this may cause future tax implications when we sell. Can anyone provide references or clarify the issue for me? Thank you.
P.S. If the answer is: "You'll just have a lower cost basis when you sell the house" that makes sense to me. If it's something else, then I'll need more help.
