My wife and I are thinking about purchasing a beach house and substantially renting it for two years until she retires. Afterwards, we would increase our use. I am trying to understand the tax impacts, so I filled out alternate Schedule E's -- in my TT 2018 return --using the same amounts (with expenses $15,000 greater than income) except for altering personal days. In the first one, we would use the property only 5 personal days that year. In the second, we would use it 50 personal days. I got the opposite of what I expected: there was no tax impact on my taxes when we used it only 5 days; there was approximately $1600 deduction when using 50 days. Then when I did the same with TT 2019, neither scenario changed my bottom line.
I guess I just don't understand. Can someone help explain this?
