Excess depreciation could be suspended as a passive loss unless you qualify as a Real Estate Professional (REPS) or materially participate in a Short-Term Rental (STR)—which would allow you to use the additional depreciation to offset W-2 or business income.

You are generally correct that there is an annual exclusion for gift taxes that generally passes tax-free (of course, in all situations, exceptions apply and you have to meet all requirements to qualify). 

Rent would probably be a short term nightly basis. 

It’s a short-term option, typically 12 months, that can provide the flexibility and funding needed for a $150K renovation.Here's why it could be a great fit:-No prepayment penalties — so you can sell or refinance without penalties.

For instance, properties with an accessory dwelling unit (ADU) on the lot that can be implemented as a long-term or short-term rental can perform exceptionally well.

I  did say i am planning to sell my business to free up some capital.

@Kelly Taylor who doesn’t like tax free atm withdrawals?  

Quote from @Nathan Gesner: There were a couple experienced investors on the forums that loved to tell everyone they could manage a short-term rental in just five minutes a week. 

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