Tax Year Prior to 2020: Do I have to claim income from renting a room in my primary residence if I'm not making any money comparative to costs?

[Anonymous]

Hi @AmyC ,

This discussion has been very informative and helpful.  I wonder if there is any advice you can provide in advance of my filing, as my situation is somewhat complex.

I converted a property from rental to personal use midyear (on June 1st) when my tenants left and I moved in, at which point I started renting rooms to two students for the remainder of the year.

I think I should anticipate that for my tax burden should be split with 50% of it being fully deductible and 50% being 2/3rds deductible (since 2 out of 3 occupants with full run of the house are renters).

Then I expect my maintenance expenses should be 100% from the first half of the year and my maintenance and utilities should be 2/3 deductible from the second half.

Does this sound right?

If I simply follow the TT interview should I expect my situation to be covered in this manner?

THANKS!

[AmyC]

You have one sch E from being a rental. Then you have a second sch E for being part personal and part rental.  2/3 for utilities sounds reasonable. You have to be careful,  what you are offering vs what is being rented. When you rent out the bedrooms, that is exclusive use and you do not go into those areas. The rest may be common area except for your private space. See Publication 527, Residential Rental Property (Including Rental of Vacation Homes)

@malcolm-cook