I am so glad I found this thread. I want to make sure I understand especially in light of the changes you have discussed.
I own my home, pay a mortgage, and rent one room in my two bedroom duplex to my niece who is on SSI and with whom I have a rental agreement on file with SSI.
There are only two of us in my home. She has full run of the home. Therefore, I have used 50% of my home as used for business purposes and have divided Schedule E expenses by 50% as well.
I am trying to be careful not to let my home revert to personal use given that my niece is a qualifying relative. As I understand it, it is a different ballgame when you are renting to a family member, personal use issues arise in this situation. I rent to her at fair rental value.
I will also claim her as a dependent again.
I hope I am doing all this correctly. ??
