If its a volunteer fire company you may be able to donate the house to them for the purpose of training and get a tax deduction .

You don't get more deductions or lower your taxes with an LLC.

@Greg StrunakA good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

This will allow you separate business income and expenses from personal income and expenses.Since you plan to house hack your bookkeeping and tax return preparation will be more complicated because a percentage of your home expenses will be personal deductions and some will be business deductions.

They are mocking these up with interest only loans and factoring back in the tax deduction as if you qualified for the tax benefits of a real estate professional and factoring in the diminished first year property tax (since its not a full year).

I would at least recommend you have them shop a policy for you.One thing we did note is that with hail damage to roofs, they seem to be decreasing coverage/increasing deductibles on that if ever needed.

It seems that investing in improvements while I still live in the home wouldn't be tax deductible.

Here are some quick stats to consider:Tangible Asset: Real estate is a physical asset you can see and touch, which can provide peace of mind.Cash Flow: About 33% of homeowners rent out their properties, generating consistent income through rent.Appreciation: Real estate appreciates by about 3-5% per year, while the stock market averages around 10% but with more volatility.Tax Benefits: Investors enjoy deductions on mortgage interest, property taxes, and depreciation.Control: You can actively manage and improve your property to increase its value.Just take it step by step, and you might find real estate is less risky than it seems.

On the financial side, work with a CPA who understands real estate to optimize your tax strategy, especially for deductions like depreciation and expense write-offs.

Oh yeah, if you did not record it, you will not deduct it on your taxes.