I moved to this property in June 2016. I converted the garage into an apartment for
my personal use, repaired the upstairs living area (fully funtional two bedroom
home) and continue to rent the upstairs.
We share the utility costs. My
personal portion of the total living space is 40% and the upstairs is 60%. I plan to continue this indefinitely. I have appropriated all the expenses into
three main groups; rental maintainence/repair for upstairs, conversion of space
(Residental Rental Real Estate), and shared expenses including taxes,
utilities, insurance, ect. For the last
group of shared, I have taken the first six months of expense as rental, and
for the second half, applied the 60/40% split and then added the rental
together. Does that make sense and is it
legal?
