Insurance deductable on a duplex?

Question

I live in a duplex and rent out the other half. I know if I was renting out, for example, a single family home I could deduct my insurance payments.

Is any portion of my insurance payment deductable on the duplex? It is a single payment paid by escrow.

Answer 1

The portion applicable to the rental part is deductible.
If half the square footage is for the duplex, you could deduct half of the insurance, taxes, mortgage interest plus 100% of repairs and other expenses that apply only to the rented part. You cannot deduct 100% of anything that benefits both the rental portion and the other part.

You would deduct the other half of tax and mortgage interest on Schedule A if you itemize deductions. The rental half would be deducted on Schedule E, even if you don't itemize on schedule A.
You can also depreciate the portion of the "basis" of the house attributable to the rental portion. You should use 27½ years as the depr period and use the 'mid-month' convention--see www.irs.gov for details of how this works.

Answer 2

The portion attributable to the rental unit is deductible as an expense on Schedule E along with any other direct expenses attributable to the rental.

Answer 3

Allocate it by sq. footage.