okay, i got totally confused and here summarized what discussed, so which way should be best to me?
1, report rental income
- using square foot method(10%) for expense deduction, thus result $5000 net income
- to reduce net income, then besides square foot, any other divide method can be used legally?
2, not report rental income
- since rental is $1300, which is not significant below fair market price for 1 bedroom, then does this mean we face risk with IRS.
- since CA state tax is over $10K, does this mean mortgage interest, property tax cannot be deducted anymore in this case?
can anyone help me to decide which way is best for me?
thanks.
