Hey BP, I'm beginning a hunt for the right tax accountant in SC. I recently bought my first property, and have brought in a roomate paying rent to me. I have questions regarding how this affects my taxes, and would love to consult with someone who knows SC tax laws around real estate. Any connects sent my way are much appreciated!
Congratulations on your property!
House-hacking is a great strategy. You should be able to deduct rental expenses on a proportional ratio, either by rooms or square feet. So, for example, if you live in half of the space, and your roommate has the other half, then 50% of eligible expenses will be deductible on schedule E of your tax return and 50% of eligible expenses will be deductible on schedule A.
I do recommend that you keep a separate checking account just for housing expenses because it will really help you come tax time. Keep track of your transactions in order to make it easier and more efficient for your CPA.
@Daniel Hyman - Are common areas split 50/50 as well then? Another checking account is a good idea, I think I'll do that. Just been saving receipts so far...
Thanks for the reply!
Eligible expenses attributed to common areas are split according to the ratio of owner occupied/rental portion.
Happy to help!
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