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Updated over 6 years ago on . Most recent reply
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Handling tax deductibility when house hacking a 3 family
What is the appropriate way to handle depreciation, tax destructibility of interest, taxes, closing cots, and utilities when you are house hacking a 3 family? Purchased in April 2018 and also understand there are some newly enacted 100% destructibility for some repairs that might be exclusive to this year. Can I take these and deduct 2/3 of the cost as I am residing one of the 3 units? Is it 2/3 destructible as 2/3 is rental or is it based on total bedrooms (i'm in a 2, renting a 3 and a 2) or total rented square footage vs total as a guide, etc? Are there advantages to doing repairs this year due to the tax changes, or is the same applicable next year as well?
Thankful in advance for any feedback.
Most Popular Reply
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Thank you both for the information. LOL... I know that its deductibilty, the auto correct pulls that word up as it does not recognize it and suggests the destructibility . Very clever response.,.. a tip of the hat to you. Many thanks Michael and Luke!