NOTE: If you own a duplex and live in one side, or only rent out a room or rooms in your residence, expenses must be allocated between personal and rental purposes.
NOTE: If total rental expenses exceed rental income, the loss deduction is limited. Any losses not allowed because of these passive loss rules must be carried forward until there is income generated, either as a result of operations or the sale of the rental activity. You must be able to substantiate these amounts if you wish to use them in future years.