House Hacking Tax Considerations

[Anthony Del Russo]

Hello BP!

I am moving towards closing on my first single family house hack! Very exciting for me. I have 2 tenants ready to move in after I close and I was wondering about the tax benefits/nuances of a SF House Hack.

Some details:

The unit is a condo with 1700 sqft and 3 bedrooms. 2 of the 3 bedrooms occupy about 400-500 sqft. The cost of the condo is 300K. Am putting 5% down. The land is evaluated at 20% of the total cost of the asset.

I think I understand that, I can depreciate in proportion to the square footage used exclusively by my tenants, but not common space (kitchen, living room, etc..). I am definitely not as versed on this topic as I should be. I know there are also more details that the decision to file this as a primary residence or break up the income producing parts of the house such as: ability to write off mortgage interest, depreciation amount, tax benefits at future sale in the future. Can anyone personally sum up (or point me somewhere) the benefits and draw backs of the different ways taxes could be handled in a SF house hack?

Thanks in advance!