Duplex with two owners how to split deductions

Forum|Forum|2 years ago
February 6, 2024
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I own a duplex with another individual. That individual lives in one half, and the other side is rented out. When it comes to Schedule E, I know I take half of the rented sides depreciation and also include half of the income, but do I get to take half of the property tax, mortgage interest, and insurance as deductions on Schedule E, for the other person would take half since they live there on their 1040.

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Best answer by AnnetteB6

Items such as property tax, mortgage interest, and insurance would be divided in half. Half of each would apply to each unit.

Therefore, when determining what amount you would claim on your Schedule E, you would take half of the half allocated to the unit that is being rented, or one quarter of each of these items.

[edited 2/7/2024 | 5:12 am PST]

@DP1933

KrisD15

To clarify,

do you both share ownership of only one side or the entire building?

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DP1933Author

We are both 50% ownership of the entire property. This person just happens to live in one half of the duplex.

AnnetteB6Answer

Items such as property tax, mortgage interest, and insurance would be divided in half. Half of each would apply to each unit.

Therefore, when determining what amount you would claim on your Schedule E, you would take half of the half allocated to the unit that is being rented, or one quarter of each of these items.

[edited 2/7/2024 | 5:12 am PST]

@DP1933

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"