Rental / Flip / Rental

[Cindi Anderson]

I am buying a house.  My plan is to hold it about 2 years and during that time it will start as a rental (appr 6 months), then I will completely rehab it (appr 9-12 months), and then will either sell it or rent it again depending on the market.  

I assume I would start handling it like a rental, expensing and depreciating as a rental.  But then what do I do when I take it off the rental market in order to start rennovations?  Would I stop depreciating and stop deducting carrying costs for that time (interest, taxes, insurance, maintenance), and instead add those to my basis?  Then start treating as a rental again once it's re-rented?  

Thanks!
Cindi