My rental property is also my primary resdence?
I've assumed that it should be prorated on Sch.A and Sch.E, according to the square footage of rentals vs. residence.
If you'd like more detail, I inherited on lot with two buildings. A cottage and a 2-story house.
I rent the cottage and the upper story of the house (separate entrance, shared utilities).
I've used the square footage of the rentals and of my residence to figure my deduction.
Since you're here,
I've also divided the utilities in the shared house, based on square footage, and deducted the tenants' share. Is that correct?
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Answers & Comments
Verified answer
Yes, that is the proper way to do prorating, when such issues are involved. If you have major exterior work, such as a new roof, you use the same process. The IRS will accept what you have done, since there is no other valid way to split those expenses.
2
Yes, determine the percentage that is rental and all costs should be pro-rated accordingly. You do have to report 100% of the income to offset the expenses.
Yep
Sch A and E
division and allocation of everything: real estate taxes, mortgage interest, utilities, repairs and maintenance
Keep good records
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