I had a question for you. Say I rent out my basement year round. I live in the upstairs. The downstairs has nearly everything to be a separate dwelling (bedroom, bathroom, kitchen) but no separate door and my home isn’t zoned as a duplex.
When I figure out my expenses I will have a larger net loss initially. I would like to apply that to my other income and reduce my taxable amount. Is there anyway to do that, or take the $25000 rental loss or 20% pass through deduction? All I can find is that income from renting a room (in a residenc) is neither passive or active and all I can do is bring my net rental income to 0 and carry over the losses to next year?
I saw something that if you are renting the room/basement full time and never use it for personal use then it’s maybe doesn’t fall into the vacation home rules and would have better tax advantages?
Thank you!
