urban-hipo
Returning Member

Investors & landlords

Thanks! Very useful, I'll deduct that from the cost basis.

 

About the room rental... I don't understand it The IRS publication clearly offers multiple ways - for example the publication 527 (page 16) explicitly list water expenses that should be split equally, and not by sqft:

"It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them"

Surely then at least water can be "reasonably" split according to how many people use it. Why not trash removal? Why would the IRS doc explicitly mention splitting by rooms if sqft is the only way? It seems like a particularly rigid interpretation of what is otherwise pretty flexible language... Is there some court cases that established that?

 

But I guess my biggest concern right now is how to correctly account for depreciation in the software (because I'm pretty sure that whether it's 20% or 35% - it's not 100% of depreciation...)

 

Thanks again!