Ask Experts Questions for FREE Help !
Ask
    criznazy53's Avatar
    criznazy53 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 11, 2011, 12:47 AM
    Tax advice on renting rooms
    If you were to rent out rooms in your first home( and receiving a first time home buyers credit). Is it better to consider half the home as a rental and get rental related deductions(i.e home improvements and maintence). Or is it better to not declare the income from the rented rooms but then lose out on the rental related deductions?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 11, 2011, 03:54 PM
    If you rent individual rooms that are NOT separate from your house, your expenses (such as the pro-rated share of utilities and depreciation) will EXCEED the rental income from the room.

    The IRS does NOT allow you to show a loss on such room rentals, so once you determine that you would show a loss, it is best to not even report the rental activity AT ALL on your tax return.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Renting an apartment with Tax Id? [ 3 Answers ]

Can you rent more than one apartment under a Tax Id? Does renting an apartment using a Tax Id impact how taxes are filed?

Sir I have a 32 rooms hotel, so I want place wecome letter in all rooms my each gues [ 1 Answers ]

Sir I have a 32 rooms hotel, so I want place wecome letter in all rooms to my every guest who checked in. so pl. I need your help, to how to write. ( I am looking forward for your answer) Thanking you sir. Yours sincerely, Babu Adhikri Hotel Sindhu International.

Renting Sober Free rooms [ 7 Answers ]

I live in a residential area and have a four (could be 5) bedroom home. My teenagers are gone and now it's just me and my 2 year old son. I would like to move out with my son and then have someone who has been in recovery for a long time be in charge of running a sober free living environment out...

Renting the Rooms in Apartment [ 2 Answers ]

Hi, Please let me know about what all are the responsibilities of landlod while renting the rooms in a town house to the professional people. :confused: Regards Sumit

Renting tax implications? [ 3 Answers ]

I am trying to determine the feasibility of renting the house I own, given the tax/mortgage implications. Any help here would be appreciated! -I live in the state of MA. I believe I would have to pay tax on my rental income, could someone provide more details on that? e.g. my current monthly...

View more questions Search