The way to handle it is to allocate expenses based on the percentage of the home’s square footage used for rental purposes.Here’s how it works:Calculate Rental Percentage: Add up the square footage of both the in-law suite and the rented room, then divide by the total square footage of the house.Apply This Percentage: Use this rental percentage to deduct a proportionate share of expenses like repairs, utilities, and mortgage interest.This post does not create a CPA-Client relationship.

Can you please clarify "keep your money in the taxable bucket and allocate accordingly"?

 @Chris SeveneyThe long-shot play I became aware of; Capital Improvement Project Funding that the city/county have allocated for projects that meet 2 criteria.Have a lifetime greater than 10 yearsCost more than $50,000I believe, even if the water and refuse collection run is only 1000 ft, that may not qualify but to do it "right", that two mile run would allow the entire subdivision to be supplied with services.

I decided to invest in a GROUNDFLOOR property with funds I've allocated specifically for hard money investment.

We allocated $33,000 to targeted renovations, modernizing the interiors and improving the overall curb appeal.

In our welcome basket we allocated $2-4 for gifts i.e. chocolate bars, Florida Oranges when in season, etc

The key is when the property is available and actively marketed for rent.If the separation isn't completed until 2026, you could still deduct the portion of closing costs allocated to the rental unit at that time.

You certainly would not want to allocated 10 units equally if number of residents and size were unique IMO.Here's a helpful link for those new to the concept:http://www.multifamilyutility.com/rubs.html

The seller can minimize recapture by allocating more of the sale price to real property instead of personal property.

GoodbudgetWhat makes it unique: The Goodbudget app uses the popular envelope budgeting system, which allocates portions of your monthly income to virtual envelopes, or expense categories, like groceries, gas, debt payoff, etc.