Tax advantages.

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

Your CPA would then utilize the results of the study to plug into your tax return when filing your taxes. 

The primary reason for rezoning (aside from complying with laws) is that it did save tremendously on taxes.

Then compare against the cash flow after taxes from the business. 

Tying up the property with no payment being made and property taxes accruing for 2 years is not uncommon.  

I feel Ike they pivoted quite a bit in the last few years since city and subsequent county license requirements spurred an STR plateau and the motivations are a bit deeper and multi-purposed now.Take parallel economies, such as Uber/Lyft, the ONLY two TNC license holders in the state and each year pay an excise tax of a few hundred thousand a piece, if not more (just for the permit, not including the whats taken from drivers).

I understand for tax purposes that I can only take two-thirds of the expenses related to the house to offset the rental income.

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

Domicile: WA State (income tax free)Property location (Texas): (income tax free)LT gains + Depreciation recapture ~ $300k on a $500k income property ~effective / average tax rate = 12% for past umpteen yrs (relatively low income, avoiding IRMAA and doing Roth rolls (no 'realized' income, just transferring from tIRA to Roth = vast majority of annual MAGI income)In the end (coming soon, ~17 yrs) ALL remaining estate will go to charities / Charitable Foundation / DAF.