1. Two time frames. You rented, stopped, and started again.
2. If you are renting for profit, you can claim deductions and use Sch E. If you are renting below FMV, you are not renting for profit and no losses are allowed- it is other reportable income. How you spend the rent is irrelevant to your intention and rent charged in the profit vs no profit debate. Rental losses carryforward until they can be used or the home is sold.
3. Only Sch E uses depreciation and you must claim any depreciation allowed or allowable when you sell the house. Regardless of any benefit you did not receive.
4. All depreciation from the various rent of years off and on is recaptured when the house is sold. It is your job to keep up with the totals.
If you sell your main home, there is no taxable gain below $250,000 for a single except for depreciation recapture.
You can rent your home for 14 days without having to report it. Perhaps there is a big event in town once or twice a year that would be better for you.
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