We bought a house this year and rent out two of the three bedrooms. The entire home is shared except for our own bedroom and bathroom area, and of course each of their rooms and bathrooms. I'm a little confused about the shared living space versus rental income. Do we actually have to report the income we've received or is it considered sharing? I doubt it's the shared situation because we actually own the home... right?
And -- I know deductions will be split based on the percentage rented (is that including shared/common space?) and then also - what can we deduct? Mortgage payment? We aren't deducting interest we already know, it won't exceed our standard deduction. Utilities? items we furnish it with?
Thanks for any help!
