Thank you for your quick reply.
In 2024, the renter is still renting a room and intended to stay for the entire 2024
and I still look for more tenants.
I cannot sell this property at this time because of other tax implications,
a surge in income, and high interest rate for another house.
I should rent out the entire house but that is another story.
If I intend to continue with this room rental, then how do I report income and deductions.
If you can point me to any IRS publications, I would appreciate very much.
This is what I have in mind. I am still looking for correct answers.
1- 3 rooms. 33% percentage of each
2- Rental income. 1 room, say, $1000. Income from other 2 rooms are $0
3- shared expenses such as electricity, water deduct 100% because there is no sharing.
4- Property tax and home insurance, mortgage interest... deduct 100%
because vacant rooms also have expenses.
If this does not sound right, then what is the right way to report my
situation?
