I have a rental property that has been rented for several years with profit. Last year (2018), we did not rent it. Well, did try but did not find a tenant. Later that year we tore it down and have been rebuilding as primary residence. We will sell our current home and move into this one when it is done some time this year. How should I report it in 2018? I feel we should not report it as rental for the year to avoid one year more prorated rental and depreciation recapture in the future when we sell it as primary residence. Am I right? Thanks.
