Converting a Home to a Rental Property - 0.2 CPE

Converting a former residence into rental property triggers a new set of tax rules. Depreciation, basis calculations, passive activity limitations, and future home sale exclusions all become important planning considerations once the property is placed into rental service.

Learning Objective

Recognize how depreciation basis and Section 121 rules apply when a personal residence is converted into rental property.

Course Description

This nano-learning course reviews the tax rules, depreciation requirements, and planning considerations involved when converting a personal residence into rental property.

Who Should Take This Course

Tax and accounting professionals advising homeowners, real estate investors, relocating employees, or clients converting personal-use property into rental property.

Why This Matters

Converting a residence into a rental property can create valuable depreciation deductions and deductible rental expenses, but it also introduces strict compliance requirements. Incorrect fair market value calculations, missed depreciation adjustments, passive loss limitations, and overlooked Section 121 timing rules can create costly long-term tax consequences.

Author / Instructor

Lee T. Reams, Sr., BSME EA
Lee T. Reams, Sr. is an Enrolled Agent with extensive experience in tax preparation, representation, and advanced tax planning. He is known for helping practitioners apply complex tax rules in real-world client situations.

Course Details

This course qualifies for NASBA continuing professional education credit. CountingWorks, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Understand the Tax Impact of Rental Property  Conversion

Start Converting a Home to a Rental Property and learn how depreciation, basis calculations, and home sale exclusion rules affect converted residences.