The Missouri Society of CPAs reports that upon conversion of a personal residence to rental, it is required to record the rent received as income. This additional income can be offset with expenses such as utilities, insurance, interest, taxes and depreciation. When converting your residence to rental, the tax basis eligible for depreciation is the lesser of cost or fair market value. It is important to note that renting out your personal residence could have negative tax impacts upon sale, and tax planning should be done when considering the conversion. | Read More