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Updated over 7 years ago,
Purchase as Investment Property and make it Primary residence
Tried searching but didn't come up...
we plan to buy a house for investment, but then think we make it our primary residence.(either immediately or wait 1-2 years)
I know that if it was the otherway around, it's against the law.. but how about my case? we applied for mortgage as investment, not primary and put down 25%.
Next would be: what if we rent it out for a year (and take full deductions on the cost associated with renting it out and depreciation), then after 1 year, move in and make it our primary residence? is this ok?
I know that if we do this, when we later sell after several years, those depreciation will be recaptured.. but how about the other costs I've deduct on the first year? does it need to be re-captured as well?