I like the idea of creating 3 rental properties.
But does that mean I will have to split every expense item across the 3 rental units? Depreciation, Taxes, Interest, Utilities, common area repairs?
Is there an advantage to doing that split vs. bucketing the entire multi-family into unit?
For example, If I take Carl's recommendation and say all 3 units were available for rent the entire year with the exception of the 1-month i took residence, I can say the deductible percentage of total expenses is 1- (1/36) = 97.23%. TurboTax has a field that lets you input the "available for rent" % for the year and then allocates expenses appropriately on Schedule E. All I need to do then is enter all my expenses for the entire building.
Thanks.
