TaxGuyBill
Level 15

As Bob pointed out, the definition of "residential" or "nonresidential" real estate is defined at §168(e)(2), and it is based on the "building or structure".  So the entire building is same, and if less than 80% of the rents are for "dwelling units", then the entire building is nonresidential.

https://www.law.cornell.edu/uscode/text/26/168#e