Can you depreciate a duplex you live in?
Robert Miller
Updated on March 15, 2026
The IRS lets you depreciate your duplex building, as well. To depreciate it, have your CPA help you allocate the property’s value between the building and the land. Once you determine the value of the building alone, divide it by 27.5, which is what the IRS considers the building’s life to be.
How do you calculate depreciation on a duplex?
Multiply the annual depreciation by the percentage of the building that you rent out. For example, if you spent $400,000 to buy a duplex sitting on $100,000 worth of land, your basis would be $300,000. Your annual depreciation for the entire duplex would be $10,909.09 per year.
How much does a duplex cost to sell?
Q: My sister and I are selling our duplex, acquired by our dad 50 years ago for about $30,000 and worth (we believe) about $500,000 now. My parents used to live on the first level and my sister and I on the second, with no rent collected.
What are the tax benefits of owning a duplex?
A duplex gives you the best of both worlds. You get to take advantage of the preferential financing available for one-to-four-unit residential properties while you also get to enjoy the investment and tax benefits of owing rental property. Not only can you make money on your duplex, but you can also enjoy some or all of that money tax-free.
Can You claim the principal residence exemption when selling a duplex?
Yes: but you’ll need to clearly document what portion is for personal use and what portion is rental. Only deduct expenses for the rental portion. When you sell, you can claim the principal residence exemption for the portion that was for personal use. To understand how this all works, consider the following: Buy a duplex for $400,000.
Can you write off management fees on a duplex?
You can also write off management fees, a portion of your cellphone bill if you take rental calls on it, or even the cost of traveling to the property if you don’t live in it. The IRS lets you depreciate your duplex building, as well. To depreciate it, have your CPA help you allocate the property’s value between the building and the land.
