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Hi, I have a client whose property consists of a main unit and an ADU unit (previously a garage). It's rented to different long-term renters. In June, he moved in to the main unit. Wondering how are you reporting such cases, on one column in sch E or 2 different columns as if they were separate properties? Technically it is one single family residence. Most expenses are combined (property taxes, mortgage). Some are specific to each space (some utilities, repairs)
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If it was a return I was preparing... I'd report all in one column.
Like a duplex or apartment complex -- all one column.
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I think I am reading that there are two units of different sizes. Main Home and ADU. The client was living the Main Home. In June the Client moved to the ADU. (Hard to read your post - Who is "he"?
As I read it two columns - One for ADU for 5 months as a rental and one for Main Home for 7 months as a rental.
Answers are easy. Questions are hard!
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Since the property is a single-family residence with a rented ADU, you can report it in one column on Schedule E, allocating shared expenses (mortgage, taxes) based on square footage and deducting ADU-specific costs fully. Alternatively, some prefer separate columns for clarity. Just be sure to exclude the personal-use portion now that your client occupies the main unit.
