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Tim Hertz
  • Investor
  • Abilene, KS
5
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17
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House hack (roomate) tax strategy

Tim Hertz
  • Investor
  • Abilene, KS
Posted

Here's my question......I just got a roommate. He pays $425 plus half the utilities. He rents 2 bedrooms from me and a garage space in my single family home (4 bed/ 2bath). My question is on the best tax strategy for what I am wanting to do both long and short term. Which expenses can I write off now without shooting myself in the foot when I go to sell the place or rent it out? 

I either want to sell the house with no capital gains after two years OR rent out the whole house after a couple years. 

I bought the house for 38k and have about 7k in rehab and hope to sell it around 75k.

Thanks for your reply in advance!

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1,538
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Anthony Angotti
  • Real Estate Agent
  • Pittsburgh, PA
846
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1,538
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Anthony Angotti
  • Real Estate Agent
  • Pittsburgh, PA
Replied

@Tim Hertz depends on your life situation IMO what the best strategy is. By write off now do you mean write off as repairs or depreciable items? I like depreciable items if I'm already showing a loss because you carry them through the life of the asset. I would think that the only items that you can really deduct though would be those that the tenant uses and then only a percentage of them based on your personal use. I'm not an accountant though. 

Perhaps @Natalie Kolodij can help. 

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