Need tax help with duplex, Schedule E and 4562.

[Justin H.]

Hey Guys,

I'm pretty well versed with doing my own taxes, using turbotax or whatever.. I have the 2008 home and business edition here.

This year I bought my first house, a duplex. I live in the lower, and the upper is rented.

Can someone walk me though what to do with the taxes?

I'm claiming half of the mortgage interest on the schedule A, half on the schedule E. Same with the taxes, and PMI.

I write off half of the water bill.

I put about 5 grand into the house. I have every single receipt for that 5 grand.

Most items were buying supplies to repair the house myself. Paint, little tools, gutters..
Do I claim these items under "supplies" or "repair"..

I bought about 1900 dollars in new appliances for the rental unit. I am on the page where I depreciate the items. Can I just lump the 5 appliances together, and call them "appliances" for 1900 dollars, or do I need to do them one piece at a time...

Example Stove for 350 dollars or whatever, then depreciate that over 5 years..

My final and most important question...

I understand that I can depreciate the rental unit. Would I put the purchase price for the rental unit to be exactly half of what I paid for the house?

I'm pretty confident I can get the taxes done myself, its just the depreciation that is stumping me for right now...

As it turns out, I'm going to be claiming a loss of about 1200 dollars for this year on the unit. This was because I only got 5 months of rent out of it, and we totally refurbished the entire place.

THANKS.
Justin