Hi, I'm not sure this is the right place to ask and if not please let me know where I should post this. My wife and I are in the process of purchasing a vacation home in Florida that we plan on moving to in about 5 years. What are the tax implications if we were to rent out the home during the next 5 years? Specifically, when we're ready to move there do we have to "purchase" the house from ourselves? I expect that the tax basis of the home will be impacted by renting if we take depreciation etc. or can we only deduct expenses up to, and not exceeding, the rental income per year? And if there is literature out there that could walk us through this I would be very grateful ... one last question, if we decide to rent out the home would we be better off setting up a LLC and running the home through the corporation?TIA,Tom
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