Additionally, there could be tax consequences for you, possibly losing your long term capital gains tax treatment. 

It's crucial to align this decision with the nature of your income sources and their respective tax treatments.

Although the legislative history is different, it's helpful in this situation to examine that case law body.I believe the courts today would agree with and implement a functional equivalence test that examines state law, the operating/partnership agreement, and defacto treatment and actions of the member/partner. 

Partnerships and corporations cannot be shareholders.To elect for S-Corp treatment, file Form 2553.

Because it was a rental BEFORE it wa your primary you don’t get 100% tax free treatment.

Here's how the treatment of capital losses typically works:Netting Capital Gains and Losses in a Tax Year: In a given tax year, you first net your capital gains and losses.

In general, expenses related to the purchase or improvement of a rental property can be deductible, but the treatment of these expenses may vary depending on the nature of the expense and applicable tax laws. 

Services for survivorsHarriet's Hope is open to any individual — no matter their gender identity or sexual orientation — who has experienced human trafficking or chronic homelessness, meets CMHA's income guidelines for a housing voucher and is ready to make a commitment to sobriety, Kendall said.Most residents will be identified through the Salvation Army, but referrals can come from anyone, anywhere, she said.What sets the community apart from others is that the services residents need are embedded within it, Kendall said.Services include substance abuse disorder treatment by Alvis, case management through the Salvation Army, gender-affirming case management through Kaleidoscope Youth Center, a computer lab furnished by Dell, a food pantry, nutritional services, financial literacy classes, peer support, employment readiness programs, legal aid, health screenings, child care and more.Residents will start out with a one-year lease before going month to month, Kendall said.

You don’t necessarily need to be local but there are also misconceptions and rules to follow:https://www.biggerpockets.com/forums/530/topics/1056436-clearing-up-confusion-on-tax-treatment-of-short-term-rentals

The assets purchased would be considered "placed in service" in tax year 2024 and would therefore be able to be expensed/capitalized as applicable depending on the treatment of the assets.