Since I occupy one of the duplex units does that mean I can only deduct 1/2 of the depreciation from my gross income?
I guess the same goes for maintenance and repairs as well, that I can only deduct what I spent on the rental unit.
Any other tax tips appreciated.
Take care and stay well all.
House hacking makes your tax situation more complex.
You purchased a property that is treated as both an investment property and a personal residence. As such, payments that you make need to be prorated between business deductions and personal deductions.
Payments that you make normally fall into one of 3 buckets
100% of the payment can be factored in somewhere on the return
Partial payment can be factored somewhere on the return
0% of the payment can be factored in somewhere on the return
House-hacking also has considerable tax implications in the event that you want to sell this property.
You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.
You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion