A two bedroom condo owned by the parents is being used by an adult child and also being rented out (at fair rental value). I see different responses as to how to calculate the percentage attributed to the personal vs. business (rental) for depreciation and expenses. The condo's total square footage is 1300. Bedroom #1 is for the exclusive use of the child (200 sq.ft.) and Bedroom #2 is for the exclusive use of the renter (150 sq.ft). The remaining area of the condo (950 sq.ft) is used by both equally (living room/dining room, shared bathroom, kitchen, hallways, and garage). In some posts I've read that the percentage for depreciation would only be based on the exclusive use of the renter (150/1300= 11.5%). Others have indicated that I can include the areas used by both at 50% (so 950/2= 475 sq.ft.), so the Renter's portion (which would be the percentage used for depreciation) would be (150+475)/1300 = 48.1% of the basis. For expense purposes, they probably both use the same amount of gas, water, etc., so expenses could be at 50%. I'm not really concerned with figuring out the expenses, but which depreciation method can I use (let's assume that I don't want to do the calculation by the number of rooms).
