My situation maybe unique, but may not so be, given the current economic climate.

I have a home used as a primary home that was put on sale when moving to a different state in July 2010 - for tax purposes, I am treating this home as a second home - to deduct the mortgage interest. Unfortunately, the home has not been sold.

I am looking into converting the home into a rental property - with a 9-month to 1-year lease, with hopes to put the home up for sale again next year.

Questions:
(1) Can I treat the mortgage interest paid for the time it is termed a second home as mortgage interest deduction? And then treat the mortgage interest paid for the time it is rented out as rental expenses?
(2) Would I be able to claim capital losses on the home AFTER the rental period ends, and the home is sold (at a lower price that I bought it)? If so, how do I calculate the cost basis for this capital loss?
(3) Would a home considered a second home be deducted as capital losses if the home is sold at a lower price than bought?

Thanks.
G