Hi, @ri-solano , thanks for the question! Generally speaking, you would be taxed on your net profit from the rental activity. This would be your rental income minus your expenses. Some of your expenses will need to be prorated, if they apply to the whole house. The IRS will accept any reasonable method for doing so, the most common is simply to divide the square footage of the rental portion by the square footage of the whole house. Note: common areas do not count as "rental portion".
Hope this helps, please let me know if this raises additional questions!
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