When you sell that property down the road you will use the allocations from your accountant and will be selling a primary residence and an investment property.If you've lived in the property long enough to qualify for the sec 121 primary residence exclusion then you will get that allocation tax free up to the limits of sec 121. 

So the newer syndicators (because let's be real, if you purchased a larger MF property on your own, you were seasoned and experienced) sometimes got themselves in pickles and tried re-trading on issues that are not usually allocated for this part of the negotiation process.

Investors should consider allocating their funds into safer investments like online savings accounts, CDs, US Treasuries, and money market mutual funds, which offer a far greater return than the 5% spread to risk-free.

Just something to think about.Generally speaking when I look at a deal that I am going to partner on, I allocate (very roughly) 33% of the deal to finding the deal, 33% to funding the deal and 33% to "working the deal"....And I adjust those up or down depending on the circumstances. 

All expenses are allocated between them.For your personal part - you will probably stay with the standard deduction and essentially throw away 1/3 of the triplex expenses, because the new doubled-up standard deduction is likely to be greater than itemized.For the rental part - all income and expenses are reported in a separate place of the tax return, Schedule E.

Because you have lived in that property for 2 out of the previous 5 years you can sell and take the amount of gain allocated to the primary residence portion tax free up to the $500K exclusion limit (if you're married).2.

Only the capital gain allocated to periods of qualified use are eligible for the $250K/$500K Section 121 exclusion.Whether the property was originally acquired in a 1031 exchange or simply purchased for investment rental use does not matter for this new tax rule.Here is an example under the new rules.

If your lender is telling you that your monthly payment will be $1,450, then he is only allocating less than $200 for taxes and insurance, which seems EXTREMELY low.

How does this work for partially shared areas (i.e. 2 rooms are allocated to 1 bathroom).

The home is very solid so I allocated $600 per year for maint.