Yes, that would support a separate household for tax purposes. My question for you is, do you think it is worth it?
If you do all of this to establish two separate households, one of you will get a larger tax refund.
On the other hand, you need to establish fair market value rent, collect it and report the rent as income. That will allow you to deduct even more of your household expenses than you do now, but you will also be depreciating part of your home.
When you sell your home in the future, you will need to "recapture" your depreciation as ordinary income.
Filing Schedule E every year will increase the amount you pay for tax preparation or software.
You should consider this plan carefully. In the end, if you are audited, the IRS may still say this is one household because you are related.
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