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House Hacking

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Shawn C.
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Expense deductions for 1 Bed/1 Bath in Single-Family but for only 6 months

Shawn C.
Posted Jan 30 2024, 18:28

I've calculated the tenant-occupied vs. owner-occupied ratio and understand that for expenses that are for shared areas, that ratio would be applied at tax time to deduct. 

However, if it's only for 6 months out of the year, could anyone advise how that would work?  Using this as an example:

Fixing plumbing that impacts shared /common areas = $1,000.

Tenant-occupied area is 40% so deduct $400?  But since it's only 6 months, does this then have to be divided by 2 for the entire tax year?

Is it the same for depreciation? Hoping to get an idea before appointment with CPA.

Thank you.

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Vitaliy Volpov
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  • Albany, NY
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Vitaliy Volpov
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  • Investor
  • Albany, NY
Replied Jan 30 2024, 20:18

Hey @Shawn C.

I'm not a CPA and I will defer to others on the platform who are who know better.  But, as I understand it, the answer to your question may depend in part on whether the property is "available for rent" (even though not actually being rented) for the other 6 months of the year.  If it's not, and it is 100% personal use during those months, then you would need to factor that into the calculation of the deductions and reduce how much you can deduct proportionately. 

Vitaliy

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Shawn C.
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Shawn C.
Replied Jan 30 2024, 21:38

I see, I wasn't aware of that. Thank you @Vitaliy Volpov! It looks like I'll have to bring up that point specifically with a CPA.

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Vitaliy Volpov
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  • Albany, NY
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Vitaliy Volpov
Pro Member
  • Investor
  • Albany, NY
Replied Jan 30 2024, 22:10

For sure! Good luck!

Vitaliy