How much of my rental expenses can I deduct for a home I also live in?

[dmcy22]

In 2021, I rented out one bedroom in my 2 bed, 2.5 bath condo while living in the other bedroom. I had a number of repairs/expenses for common areas. Would I be able to deduct 100% of these or only 50% of these expenses?

Expenses include:
- Purchase of new microwave vent grille
- Repair of fridge leak
- Supplies to clean water softener
- Supplies to clean hard water from toilet in the half bath
- Supplies to repair kitchen grout (there were cracks)
- Supplies to re-stain kitchen cabinets (the wood was damaged)

Thanks in advance

[ColeenD3]

First, you have to prorate your property into rental and personal use by square footage. Any area that is available for common use is considered the personal portion. So even if your tenant uses your kitchen, everything done to improve that area is still personal. You can add improvements to the basis of your home which can help at sale time.

If an improvement relates to the rental section only, you can depreciate it. If a repair relates to the rental section only, you can deduct it. If an expense relates to both areas, you would prorate the expense the same percentage as you did the property. 

The only things that you can personally deduct are mortgage interest and property taxes. Your portion is entered on Schedule A. The rental portion is on Schedule E.

[dmcy22]

Thank you. You said:

If an expense relates to both areas, you would prorate the expense the same percentage as you did the property. 

If I'm understanding correctly, then a repair of the fridge, which is used by both my roommate and I use, would be deducted at 50% (based on the pro-ration). Is that right?

[DawnC]

No, anything that is in the common area is considered personal.    If you are renting out one room, your rental percentage is the amount of space you rent (the room) divided by the total square footage of the home, so it is unlikely that you are renting 50% of the home.  Common areas are not included in your rental space percentage.    If you have the carpeting in the whole house cleaned, that would be an example of ''an expense that relates to both areas''.   For that expense, you could deduct the rental percentage of the total expense.   

If your renter has his or her own separate kitchen space that is not shared with you, you could include the area in the square footage calculation and you could deduct repairs for a frig in there.    But if you are renting out a room in your home with only one kitchen, the kitchen area is considered common area and therefore personal, even if you don't use the space yourself.