USA Deductions for rental apartment

[fightingirish]

I have an apartment that is attached to my shop that is being rented out. The shop isn't attached to my home. I am wondering if I can take any deductions for insurance and mortgage payments. I'm not quite sure how to calculate it since it's not technically a part of my house I'm renting.

Any advice would be appreciated.

 

[kirby]

First of all: GO IRISH!
Secondl3) I'm lost and need a better description: So correct me if I'm wrong. 1) You own a home 2) You also own a shop that has an apartment attached to it. 3) You are renting the apartment to someone else.

If the above is accurate, then no, Insurance and mortgage paid on the house cannot be allocated over to the separate apartment.
but again correct me if I have the facts wrong.

 

[fightingirish]

That is correct. We own a property that is 2 acres of land, our house and the shop with the apartment in it (that is being rented to someone else) and our mortgage is for all of that. I thought that maybe because the shop was part of the "value" of our property that maybe I could take some of it as a deduction.

 

[Samir]

You could do this if everything you owned was in a business entity like an LLC. Then the LLC owns all this and can deduct operating expenses.

But even when owning these assets personally, you still should get a deduction for at least the mortgage interest on your tax return. I don't think this would be treated any different than if you had a rental home.