PatriciaV
Expert Alumni

Investors & landlords

Yes, if you charge less than fair market rent, the property becomes a "second home" and you can deduct only property taxes and mortgage interest. You still report the income as "Other Income," however.

 

If you occupy the other half of the duplex, then the entire property is personal use only. You would not report this property on Schedule E as a Rental until you can charge fair market rent.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"