Hi Opus17,
You're correct that I am learning how to handle my finances and taxes now that I'm a homeowner. I'm not sure if my answers will make you think I'm more or less a mess 🙂 lol, but I would still love your advice regardless.
I've got a main house and an in-law unit that's got its own kitchen, heating, water heater etc. I have been renting out solely to friends. They are paying below market value, whether they're choosing my spare bedroom in the main house or they're living in the in-law unit. I thought I had to report all the money I get from them for both their portion of the utilities and their monthly rent as a part of doing my taxes. My friends pitch into their share of utilities, and that also includes giving a certain amount of money to go to the monthly solar loan payment. Since they weren't relatives, I didn't think I could avoid reporting the money I receive from them as income and I didn't want to do anything that could be construed as tax evasion. Right now, in terms of square footage, I "rent" out 42% of my house between the in-law unit and the spare bedroom.
This is my second year doing this, and if I can count everything as personal use, I would. If you're saying I can make this all personal use, I truly would. I don't really see myself as a landlord or as a business, but I've been tracking everything and inputting expenses from a more conservative understanding of what/who counts towards personal use. I'd love to hear your advice and thoughts. I was told by friends to consider myself and my house like a rental property, but if they're wrong, I'd love to reduce and/or eliminate all the expenses because I don't see myself making a profit as much as just paying down my own mortgage with help. I live in CA if that makes any difference.
Thanks!
