Duplex rental property deductions

For tax purposes you have two properties: a personal residence and a rental. Anything specifically involving only one, e.g., interior painting, is treated as appropriate to that type of property (deductible maintenance for a rental, no tax benefit for a personal residence.) Anything involving the entire property, e.g., mortgage interest, you split between the two.

-- Phil Marti Clarksburg, MD

allocate the expenses

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-----> real address on hobokeni or hobokenx

You have essentially two distinct properties, and need to allocate all costs between them. If you logically conclude the split should be 50/50, then half the total allowed costs are allocated to the rental property. __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

Schedule E for the rental, Schedule A for the part you live in.

Schedule E for the rental half (but not the land). No deduction for personal use property

Allocate repairs and maintenance between the two units. Deduct duplex expenses on Schedule E. No deduction for expenses on the personal use unit.

Allocate between units and deduct the rental expense on Schedule E. No deduction for personal use unit.

For expenses that are allocatable between the two units, you need to establish some basis for the split. Do something that favors you BUT has a realistic basis, 50% may not be the answer. Square footage, number of rooms and other methods of allocation could be used. You need to use the same method over time, however. Can't decide each time on the fly.