Thank you for these pointers to actual IRS docs. Over the years of renting we have used the ratio that is described here to determine how much rental expense could be deducted in Schedule E. However, what is not clear in anything that I've read is whether this is also the same ratio to use for determining the sales portion to determine your potential taxable gain when the property is sold. I believe it makes sense that it would be but there is no clear instruction that I can find for determining the "business portion" of a sale price of the property. Thank you for your responses.
