I think it makes sense to take depreciation each year

This is my take. Am I correct on #2 (tax treatment)?

1. Assuming you will make a profit in future, then the accumulated loss will offset your profit which otherwise will be taxed as income.

2. When you sell your house in future, even if you don't live there and sell as investment property, the gain is treated as long-term capital gain, which is taxed at a lower rate (5% or 15%).

3. If no rental profit in future, then the loss is added back upon sale of the property, then no difference.