I’m seriously thinking about buying a house in the near future (hopefully before June 30, 2009), and I have some tax questions. (Well actually, I have questions on every aspect, up to and including whether I’m getting in over my head, but I digress.) While I could afford to buy a $150K property on my own, I think it makes more sense to look for a ~$225K duplex and rent out half. (I would be able to afford the payments without a renter, just not much more; with a renter, I would be able to use that money to help improve the house.)
Does anyone here has any experience with owning a duplex and renting the other half?
Does the whole property count as your primary residence?
Is the rental half a “rental property”?
This is also relevant to the First Time Home Buyer Tax Credit. So far, I haven’t read anything that explicitly eliminates duplexes from eligibility, but I haven’t read anything that explicitly includes them, either. Anyone know how this applies?