thank you @NCperson ,
1) how much would your house rent for if you rented the whole thing out (and you didn't live there)? i checked the rental website for a 3 bedroom TH, total rent will be $3687
2) how much are you charging your roommate? (and I assume he has run of all the common areas). i charged $1300.
3) if 2) divided by 1) is less than 50% then it is below fair market rental. result is 35%.
so do you mean in this case i donot need to report anything or report as not-for-profit?
my friend who runs similar case like me hired a CPA and report his rental as additional income and deduct expense based on square foot method (15%), that turns out about $3000 capital gains on him :(
