Vacant rental and tax implications

[R A]

I own a single-family home that I have been able to rent successfully over the past several years. The last tenants moved out in June 2008 after 4+ years. Since then the property has been vacant as I attempt to find qualified next tenants.

For tax purposes for 2008, I am assuming the vacant days will only effect the income side of the tax equation and the remainder (depreciation, other expenses) will be allowed as previous years even though the property was vacant for 7 months of the year. I would appreciate confirmations that this is how it should go for 2008 tax purposes.

If I have no luck finding tenants in late 2009 (hope that isn't the case), I wonder if I could rent the home to relatives at a fair market rent (same as I would charge any tenants) and still do my taxes as I would with any tenants?

This is the longest my rental has been vacant and I'm concerned about what effects it may have on how I do my taxes versus prior years.

Thanks in advance for your thoughts!