I'll be purchasing a 4 bed 4 bath and plan to rent out at least 2 bedrooms.
If I rent out 2 beds/baths, then do I get to offset my rental income using exactly half of all housing expenses (mortgage, HOA, utilities, etc)?
As far as depreciation, do I depreciation 50% of the property? Do I also get to depreciation furniture and shared items purchased in common areas?
I am in a higher tax bracket and want to offset all of the income, if possible. I just want to make sure I do this correctly from the get-go.
Hi Thang. If you rented out 2 bedrooms and 2 bathrooms and allowed tenants equal use of the common areas of the house, then 50% of the property can be depreciated (based on your description above). If your refrigerator and stove are being used 50% for business and 50% for personal use, then you can depreciate 50% of those as well.
How many occupants are going to be there when you have a full house? How many is now?
This can be occupant dependent. Suggest working out both numbers and ask your cpa for a verdict.
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