For specific tax questions about Nevada it's best to talk to a local CPA that knows your exact situation.

My CPA advised me to split the generic costs such as property tax and water bills equally between both units, which seems reasonable.

@Llewellyn Clarke you need to speak with your CPA on this topic right away.  

This sounds like a Real Estate attorney and you CPA need to be on a conference call with you.

For the tax questions, I would hire a CPA :) Best of luck to you, and I respect the creativity!! 

(Rental loss = repairs or renovations exceeding rental income) If you are a high earner, you generally want to get advice from a CPA that understands real estate income & taxes, but here's a few thoughts:1.

There is always a deal somewhere and if you have professionals helping you (mortgage broker, realtor, cpa, etc) lean on their knowledge.

I have reached out to a CPA to discuss more on that topic.

I would talk to a 1031 Intermediary and or a CPA to ask what their recommendations would be on the safe side.

Bye the way folks, Jeff is my CPA and he makes the magic happen.