You need to allocate the purchase price between the building and land first based on fair market value which you can find on your local tax assessor website.You can only depreciate that portion that is being rented out, as depreciation is allowed in this case for property held for the production of income under 212.You cannot bonus a house (at least not the structural component), ever.Bonus is under 168(k) and is for property with class lives of 20 years or less, and commercial or residential is 39 and 27.5 respectively.

Rate Allocated to Class Equity 500,000 50% X 10% 5% Debt 500,000 50% X 4% 2% Indicated Capitalization Rate 7% As you can see, this analysis assumes that you are only interested in getting a 10% return to your invested dollars regardless of the risk.

If you were to rent out a portion of your primary residence for 3 years and then sell the property, you could do a 1031 exchange with the percentage of the property that is allocated as a rental.

by the way maintenance/cap ex is under allocated for small unit count properties in nearly every case.  

Can you please elaborate on how my CPA would “allocate the ADU”.  

The 401(k) holder is not allocated the gains for the portion of the account that is loaned out, unlike in a cash value life insurance policy.Now let’s take a look at a solution to these pitfalls with the traditional route of real estate investing.Given the many disadvantages of the alternate sources of real estate financing, using cash value life insurance tells a different story entirely.

Any prudent financial planner isn't going to say "allocated 100% of your retirement account in mutual funds when you're 5 years or 5 months away from retirement!"  

I have been investing in both asset classes for 20 years and allocations have not been uniform over the years.

There is already a buffer of time allocated to this before going live.I’m simply trying to finish as much of the online presence, descriptions, details, instructions, etc because I have the time now to allocate to that.I’ve searched online for tutorials on “listing” properties for the various portals but most are outdated (Airbnb has changed A LOT) and it seems like some of the finer tweaks that would make to a listing only happen AFTER it’s live and published.If anyone has gone through a similar process of trying to input as much information to a listing as possible please let me know what your steps were.My gut feeling is that I need to actually set it live but then quickly blackout the entire calendar so no one can book yet.

This section provides rules for allocating debt issuance costs over the term of the debt.