@Lucas Carl I have been pulled back and forth on this until I read an article by an attorney.If you are providing a bead and breakfast with daily maid service meals etc then yes this is schedule C.

The increase of the basis will help you minimize the taxable gain when you eventually sell the house or more depreciation when you convert that to rental. 2) Improvements made on the rented side will also be added to the basis, but you can depreciate the improvements on the rental side and deduct depreciation against the rental income.

You're paying full price up front, so there's no value to be added such as by fixing up a junker. 

How this is going to work is (simplified):Rental income( rental Expense) ( depreciation) Rental Income/Loss - ( This is your passive income or loss) If income: The rental income is taxed as ordinary income that will be added on top of your W-2 income (W-2 is non passive income). 

They will not only allow depreciation, amortization, and interest expense to be added back in to the income that carries through, but also it will allow the lender to see what other contingent liabilities a borrower might have that they haven't disclosed.

Some of those improvements would be added to your basis and depreciated with the structure. 

caulk" where the wall meets the countertop and apply a new bead of "sanded caulk"; it is silicone that looks more like grout. 

My friend will be added to the LLC as well, just that he's a foreigner and the process takes time while we want to get the business running asap.

I definitely want to be added to the mailing list.

@Mike Taddyhome inspections is usually added to basis and depreciated over its useful life.minor supplies - if paid to get the property ready to become a rental - it should also be added to basis.Since these items are added to basis - you won't see the benefit of their depreciation until 2018.