How to classify mixed-use property on Sched. E
I'm wondering how to classify my mixed-use property on schedule E. It has 6 units, 5 residential and 1 commercial and naturally it would be advantageous if I could classify the property as residential and be able to depreciate over 27.5 years vs 39 years.
By unit count the property 83% residential and 17% commercial, by sq footage the property is 67% Residential and 33% commercial. By income, the property is 62% residential and 38% commercial.
So BP how would you classify this? Any creative ideas like splitting the property into 2 separate properties and depreciating them in that manner? Any suggestions or advice is appreciated!