Carl:
thanks for your response. We have gotten permission from the developer, who would
actually be performing the construction for us. All permits, etc. have been vetted. That is why I was jumping to my tax questions (which I am still unclear about).
We would be knocking down two walls but will put up barn doors to have some separation between the units. The tenants in the current investment property are family members, who do not mind the walls coming down.
Simply put, would I be able to keep my current schedule A (current primary residence) and schedule E (investment property) if the units were combined? If so, would I need to keep two sets of appliances, etc.?
