Re: Taxes Checklist - Landlord Forum thread 330292

Re: Taxes Checklist by Garry (Iowa) on January 26, 2015 @00:09

I agree with anon. Split all the 100% bills that you pay, in half, just as your duplex is split in half. You must show all the rent they pay you, as income, and can deduct half the utilities, etc. as expenses. You can also depreciate the rental half of your property. Whatever you paid for the property, you must cut that cost in half, which then it makes it your own home, and a rental. You must then deduct 10% to 20% off that price as land value, which cannot be depreciated. I use 10% if it is a small, postage stamp lot, and 20% if it is a full sized normal lot for the neighborhood. Then , the remaining amount you cut in half, and divide that amount by 27 and 1/2 years. That final figure is the amount you can use for depreciation each year. If you should ever move out and rent out your half of the duplex, then you figure the second half of the D. the same way you did the first half. Also, half of the interest you pay on the whole duplex is an expense on the rental side. Any repairs you do on the rental side is also an expense against the rental.

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