you can't do that..

if you live in the house for 9 month, and rent out for 3 month, you need to deduct the first 9 month mortgage interest and property tax under itemized deduction as primary home, you can not deduct insurance or other expenses.

then you change the property to business asset for 3 month, use schedule E you can deduct 3 month of interest, tax, 3 month of insurance, and other repair cost, then deduct your partial depreciation (3month).

later if you sell this property, you need to report it as sale of business property, not as your primary home.

this is base on my limit knowledge on renatls, please consult a tax professional for more detail.

所有跟帖： 

• Depreciation is tricky. If you forget to recapture when you sell -borisg- ♀ (42 bytes) () 04/09/2009 postreply 21:07:28

• once it is rental, IRS consider it been depreciated whether you -jy101- ♂ (77 bytes) () 04/09/2009 postreply 21:15:40