Live in multifamily taxes???

[Joshua D.]

Ok so I live in a duplex, and rent out the other half.

1. My CPA is telling me we will deduct 50% of the shared expenses on the building the rest is considered my housing costs.

2. I was reading somewhere that the correct way to file live in multifamily is to charge myself a fair market value to live there to the profit side and deduct all of the expenses to the cost of the investment.

What is correct 1. Or 2. ? Or both???

I hope this is clear what I'm asking.

I'm not sure my CPA is familiar with rental properties or not. Just want to feel this out with the BP community on if it's time to look for a new CPA.