Yes, I have been reporting half of the duplex as a rental property for many years, using Schedule E. For expenses such as mortgage interest, taxes, etc., I have entered half of what I paid for the whole house.
Reporting two sales seems to make sense. For each sale's cost basis, sale price, closing costs, etc., I will have to divide the totals by half, just like on Schedule E.
Should I use Form 4797 to report the rental property sale?
