@Carl
My question is about debt allocation under 1.163-8T. Yes 1.2 is the cost basis and 25% is the ADU which is rented out. If loan amount is 1 million, can 300K be debt be allocated to the 25% ADU and 700K be allocated to the portion which is primary residence? If that is allowed and if I do that what it effectively means that I am saying whole of downpayment was towards the cost of the portion which is primary residence and down payment for the rental ADU portion is 0.
