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Updated over 9 years ago on . Most recent reply presented by

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Ann Arbor
  • Ann Arbor, MI
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Renting additional room in house tax implication

Ann Arbor
  • Ann Arbor, MI
Posted

I have a question about how to handle depreciation of an owner-occupied residence where we rent out rooms. We placed one room in service in 2014 (25% of home) and filed the 4562 form for 25% depreciation of the building value minus the land. For 2015, we rented an additional room in the home (now 50% of the home in service). Do we need to file an additional 4562 form this year to account for the change in percentage of the house in service, or do we continue only depreciating the original 25% amount, or something else? Thanks in advance for any advice!

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