ABnB In-Law Suite under business

[APB727]

My house has a garage and loft that were converted to an in-law suite.  It's not shared space, but it is attached to my main house and all utilities are metered with the main house.   I have traditionally included the 1099-K as part of the business income and associated the utilities and square footage as part of my home office calculation and repairs or direct costs as direct expenses.   Is that appropriate or should I be doing that differently? 

[LeonardS]

From what you have posted it appears that you are accounting for your income, 1099-K, and expenses correctly.  The one item you did not mention is depreciation on the ABnB In-Law Suite.  You should be including depreciation on your tax return for the ABnB In-Law Suite.  If you have questions please post them to this thread.

[APB727]

Absolutely true, the house square footage depreciation is done as well.  I also have an ebay business that requires storing inventory and dedicated office space, which accounts for 59% of the square footage.