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Author: FBCinvestor Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Multi-family primary residence Date: 1/23/2002 8:27 PM
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I am planning to buy a 4-plex and live in one unit while using the rent income from the other 3 units to pay the expenses. How would I handle this for tax purposes? Would I be able to claim all the mortage interest or would I need to divide it between the Schedule A and the Schedule C? Are there any other tax considerations I should be aware of?
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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 57528 of 121219
Subject: Re: Multi-family primary residence Date: 1/23/2002 9:00 PM
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I am planning to buy a 4-plex and live in one unit while using the rent income from the other 3 units to pay the expenses. How would I handle this for tax purposes? Would I be able to claim all the mortage interest or would I need to divide it between the Schedule A and the Schedule C? Are there any other tax considerations I should be aware of?

I suspect there are a lot of other tax considerations you should be aware of since Schedule C is not used for rental income, it's Schedule E. In any event, you will have to allocate your mortgage interest and real estate taxes between the personal and rental portions of the property. Repairs to the rental properties can be deducted (on Schedule E), but not to the personal unit. For starters you might want to review the following IRS Publications:

527, Residential Rental Property
530, Tax Information for First Time Homeowners
936, Home Mortgage Interest Deduction

Ira

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Author: FBCinvestor Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 57529 of 121219
Subject: Re: Multi-family primary residence Date: 1/23/2002 9:10 PM
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Oops... I meant Schedule E, of course.

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