We purchased a home in a 55+ community 4 years before we need it as it was the right home and priced right.
We furnished it so we can rent it monthly and weekly in the undesirable season. Here is my question: From a tax perspective it certainly makes sense to run this above board as an income producing rental for the depreciation of the home and the accelerated depreciation of the contents (5 years). I suspect this strategy will result in 5 – 6K tax savings annually. The real question comes when we sell our primary residence and occupy the rental.
Forgive my ignorance, how will the IRS view this? As I will not be selling the rental, simply moving into it and discontinuing operating it as a rental. Will I be subject to recalculation of the tax benefits that I received the previous 4 years?
