Greetings. Just purchased a second home in 2024. Plan to rent (personal use less than 15 days per year) but no renters as renovations have not been completed yet. I understand even with no renters, I can still deduct a few things for 2024 like property tax.
I'm trying to understand treating the house differently in different years. Is it a problem to claim the house as vacation house one year and rental the next? What if we become snowbirders in 10 years, is it red flag to then switch back to vacation house?
How do tax benefits for depreciation and improvements work if the house is not rented for a few years after purchase? Are any depreciation or improvement deductions ‘lost’ by not renting in the same year in which you purchase or make the improvements?
Grateful for the community's input. Many thanks.
