Depreciation and owner occupancy

3 Replies

If a multi family is financed under the terms of owner occupancy, will the tax benefits still be in effect? Depreciation, repairs, are they the same as a non owner occupant building?

The tax benefits are reduced by the % of the property that is owner-occupied. In other words if you live in a duplex, you can only deduct half of your expenses such as depreciation, landscaping, common utilities, etc if they benefit the entire property. If the expense benefits just the rented unit such as a toilet repair it is 100% deductible. If the plumbing/electrical etc. Repair is for the owner's unit it is not deductible. The exception is property taxes and mortgage interest which are deductible on your personal return for your personal residence so those two expenses are 100% deductible. I hope this helps.

@John Yanko

You can ask you're accountant when they do your taxes what else you can look for to deduct and they might be able to find more things for you. Like miles you put on your car for the rental property and things like that