Yes I am aware that I am renting part of the house. The non-shared (exclusive) part of the house is 75% of the total footage. I am still confused. Questions:
1) i found online that "you are eligible for Safe Harbor only if the total amount paid during the year for repairs, maintenance, improvements, and similar expenses for a building does not exceed the lesser of $10,000 and 2% of the unadjusted basis of the building". The basis of my home is about 240k, so my expenses etc goes over $4800 (2% of 240k). Does it mean I can deduct $4800 of expenses, furniture etc, or that I cannot take advantage of the De minimis at all?
2) If I can deduct $4800 as I just said above, I see online that I can offset my active income if I claim active participation in the rental activity (I am active, and I can offset up to the minimum between 25k and 50% of 150k-MAGI, which in my case is about 15k). Can I offset my income in any way once I claim the de-minimis for 4.8k? Or is the rest just carried over?
3) Can i deduct 75% of the furniture expensive in the shared part of the house, or can I deduct only 100% of the furniture in the exclusive guest rooms?
Thank you
