I read in a post today about house hacking. But instead of living in the house to follow FHA guidelines the person used their 1/2 of the house for their office and wrote it off as an expense? I live in Ohio and am not familiar with the rules yet. Lots to learn. Can anyone tell me if this would be legal in Ohio and what percentage of the house could be written off legally. I am currently in a lease and can't move to a house I might buy so this sounds like a good idea to me. Thanks
@Colleen Arends - That is an interesting point. Lenders often have different criteria. I would talk to a few different lenders to see if this is something they would allow you to do.
The portion of your rent that you can write off as an office expense is the percentage of your house used for office space. So if you have a 1,000 square foot place and you had an office that was 100 square feet then you could write off 10% of your rent as an office expense.
Just a disclaimer. I am not an accountant and have no credentials to give tax advice. This is just what I've read about. I highly recommend reading Amanda Han's book, The Book on Tax Strategies for the Savvy Real Estate Investor.
@Colleen Arends using your half as an office would not be considered owner occupied and the lender can call the note due if they find out you are not living in the property.
that's what I thought. It sounded too good to be true. Lol. Thanks
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