We purchased a condo in 2001 and placed it in a rental program. Since we both are retired now, we want to be able to use it more so we want to remove it from the rental program and use it as a vacation home. We are not interested in using it as a primary residence. There is no mortgage on the condo. Our plan would be to use it as a vacation home for a while and then sell it.
What are the tax ramifications if we do this? If we do this in the middle of the year how does that affect the taxes? What if, after a year or two, we decide to place it back in the rental program? Is there an advantage to doing this before we sell it? What kind of taxes can we expect when we sell it?