Can you Use accelerated depreciation method with a house hack?

[Andrew Edwards]

Could an investor use the accelerated depreciation method in a house hack of a small multi family or a Duplex property? I understand this method is unavailable for a primary residence, but does that limitation extend to those who live in one unit while renting out another?

[Craig Curelop]

@Michael Plaks - I think his question makes perfect sense with the words he used. He is talking about a house hack.

@Andrew Edwards - I am not an accountant, but I have talked with my accountant about this and am currently doing it. You are able to take depreciation on any property that you are renting out. If it is a duplex and you are renting out 50% while occupying 50%, you are able to depreciate 50% of what you normally would. 33% for a Triplex. 25% for a quad. If you are house hacking a single family residence and renting by the room, the same method applies. Let's say it's a 2,000 square foot house and your room is 100 square feet. You are able to depreciate 95% of the value that you normally would (100/2,000). 

As for the accelerated depreciation question, you CAN accelerate depreciation though a cost segregation study. This is most common in commercial properties, but it can be done for rather cheaply in residential. It's typically $1,000 to $2,000 to do, but will likely save you much more than that in tax savings.