Contact UsIs it correct that a mixed use property is considered acommercial rental for IRS reporting purposes? This is a multi-unit property overseas, so depreciation same for both. It is 5 units residential and 7 units commercial.
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Tax Professional Answers
John Stancil
In most cases, that would be true.The IRS classifies mixed-use properties as commercial unless the income from the residential portion is 80% or more of the gross rental income. So if 80% or more is residential, you treat that portion as residential and treat the remainder as commercial - treating it for tax purposes as two properties.
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425 weeks ago