One more thing I forgot to mention.
Your cost basis on the unit you retained as your residence, is 1/2 of the sales price you two contracted to pay for it back in 2013.
Your cost basis on the rental unit, is the full sales price you contract to pay to the seller. Whatever percentage of the loan total that works out to be, is the same percentage of the mortgage interest that you can claim on the SCH E. The difference is a SCH A itemized deduction.
