Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Apr 18, 2019 2:41:40 PM

Roommate/live-in landlord income tax obligation

I own a condo and want to rent a room in a typical long-term roommate situation, only to share in expenses, not for profit. My place is about 1,200 sq ft and the roommate would have a private bath within their room, but the rest of the condo would be shared 50/50. I was thinking of charging $900/month (all-inclusive) flat rate for rent/utilities. My mortgage/escrow and HOA dues total about $2125.00/month, which include homeowners insurance and property taxes.

 

Since I have to claim this as income, despite only sharing equally in expenses, roughly what would I owe in taxes at the end of the year come tax time? FYI:I live in California

0 1 528
1 Replies
Level 15
Apr 18, 2019 3:27:51 PM

You might be better off charging rent (taxable income) and then splitting the utilities (not taxable).... it might just be less of an accounting headache that way

Rent times your tax bracket would be the tax ...