Tracking Expenses for Owner-Occupied MFs

[Lindsay Wilcox]

I just bought a triplex and am planning to live in one of the units. I'm trying to make sure, for tax purposes, that I document everything and keep the expenses for the rental units as separate from my personal expenses as I can.

I will also be consulting a CPA about this. Please do NOT respond and just tell me to consult a CPA or lawyer!

I am asking for feedback from those of you who have lived in a MF home and rented out other parts of it. How did you keep track of the expenses? How did you break down which expenses were for the rentals and which were for your unit? What if your unit and another unit share an improvement, like new steps to the front porch or, someday, a new roof? Does it matter if there is only one electric bill and one water bill? Did you try to find some way to split it? Did you just divide it by the number of units, the percentage of square feet, or something else? What about when you went to purchase supplies? How did you break down which were for your own unit, like paint for a personalized paint job, and which were for the other units, like toilet seats and smoke alarms? What about things that were both, like tools?