So just to add clarity incase anyone ever digs this up. You can as a real estate professional use the losses from one home as a deduction for another home. I did just realize though that renovations do not count as a deduction but are added to the cost basis to the home when it is sold or if you decide to depreciate it over 27.5 years. There is also no issue with the 500k deduction for married couples selling their primary home as long as you are not listing either side of the duplex as a rental on your tax returns. Also you apparently do not need a justification for the cost basis for your investment sale if it is a fix and flip.(held for 2 years)
Please let me know if I'm wrong.
