Tax Deductions, depreciation on House Hack?

[Dillon Black]

Hello everybody, so I spent some time trying to figure this out, but I'm hopelessly lost. 

What are the tax benefits or disadvantages of house hacking and living in one unit of a duplex, as opposed to renting both units out? 

Will I be able to deduct more depreciation, insurance, and interest one way or another? 

Thanks so much for taking the time to look, any answers would be much appreciated!

[Natalie Kolodij]

Originally posted by @Dillon Black:

@Natalie Kolodij

Awesome that helps a lot! So basically if I am putting 20% down the duplex anyway, it would be smarter tax wise to just rent both out and depreciate both sides.

Do you know if there are any Insurance benefits to living in the duplex yourself?

Many people specifically house hack a duplex so that they ONLY have to put 3% down instead of 20%. Then you have lots of cash leftover to put toward ANOTHER property. 

For 1 year you would only get to depreciate half if you buy it as owner occupied. 

After you move out you get to depreciate 100%. 

Run the calculations to figure out what makes more sense for you.