I was wondering about the exact tax implications that there are when house hacking a single family home. I’ve read that you can either go by the amount of rooms rented vs rooms you occupy or by square footage of the home vs square footage of the space you occupy. Using this info to determine the percentage of the home that is occupied by you and what percentage is occupied by the tenant(s). But from there I didn’t know exactly what would go on your schedule E and schedule A for tax write-offs. So I would like to ask the people of bigger pockets what exactly is possible to write-off when house hacking a Single family home. (let’s say there are 5 bedrooms and 4 of them are rented out to tenants)
I recommend that you not try to DIY your taxes when house hacking.
House hacking will complicate your tax return. Your property can be treated as both an investment property and a personal residence.
As you stated, your property expenses will need to be divided between business deductions and personal deductions.
House-hacking will also complicate your taxes if you sell the property.
i recommend finding an accountant that specializes in real estate taxation. You may want to consider working with your accountant remotely to expand your options.
I would also recommend looking for a tax strategist who is willing to work with you throughout the year, not just when preparing your tax return. You want an accountant that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.
Good luck and let me know if I can be of assistance.