If that is so, then deduct away.

However in Oregon we are federally capped on interest rate deductions along with state and local taxes so it's mostly a standard deduction for us, hence the higher interest 30yr doesn't help compared to 15yr from a fed tax standpoint. 

The only thing I can think of is to request (3) months of previous bank statements and/or voided checks to see that the payment was indeed deducted when the rent was due so I can at least see she made timely payments. 

Hello,Does the IRS require you to have the original paper receipt for proof of deduction or does can I use a scan copy of the receipt?

My insurance company went to the tenant's insurance which then covered my deductible.  

Neither of our businesses produces much income after deduction of expenses.

I know typically with expenses for a duplex whatever money you spend on your personal residence unit is a non-deductible personal expense.

I am making 2200 a month against 2700 costs (p&I, taxes, HOA etc). thats 6000 a year in losses. is there any way I can claim deductions for this loss.I was reading few blogs on rental income and looks like I cannot deduct these losses if my AGI is above 100K but is there a way, like forming an LLC and assuming loss for LLC or any thing?

Then somewhere I would input the total mileage driven and multiply by 0.545 and bam here is a big deduction on our personal return. 

They will deduct depreciation.