I have a somewhat related question. I rent one bedroom in my two bedroom house to my qualifying relative niece who is on SSI under a rental agreement on record with SSI. She has full run of my house. The rent is fair rental value.
I thought I could enter 50% as the percentage of the asset used for business purposes given that she has full run of my home. I thought this meant 50% personal use and 50% business purposes.
But, other advisers have stated that the square footage of the room is the business portion of my home. The square footage of the room represents 16% of total square footage of my home.
Therefore, it would appear that Schedule E should reflect this percentage against the various expenses? I realize publication 527 speaks to this, but I want to make sure.
Secondly, should I use 16% instead of 50% as the percentage of the asset used for business purposes?
Thank you.
