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taxache
New Member

I rent rooms and a car garage same property but garage rental not in connection with room renters. How do I prorate the garage if using number of rooms instead of S/F?

It is a detached 4 car Garage + part of the driveway, utility in the garage is not separate from the house, 100% rented no personal use. 

How driveway kicks in? It is rented separately as well not with the garage. 

it is a big  garage yet prorating square footage tax wise would not be to my advantage x rooms.


Thank you

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Accepted Solutions
MichaelDC
New Member

I rent rooms and a car garage same property but garage rental not in connection with room renters. How do I prorate the garage if using number of rooms instead of S/F?

You can use any reasonable method for dividing the expense. While the most common methods for dividing an expense are based on the number of rooms in your home or based on the square footage of your home, you could use another way.

In some areas, non-airconditioned areas are given half the square footage when assessing property values. It would be sensible to assume that the Fair Market Rent of a garage would much less than a room in the house. In this case, in might be reasonable to use a Fair Market Rental method. For example, if you get $500 a month for a room and $250 a month for the garage, you might use that in calculating your allocation.

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3 Replies
MichaelDC
New Member

I rent rooms and a car garage same property but garage rental not in connection with room renters. How do I prorate the garage if using number of rooms instead of S/F?

Do you live in this house yourself?
taxache
New Member

I rent rooms and a car garage same property but garage rental not in connection with room renters. How do I prorate the garage if using number of rooms instead of S/F?

Yes, I do. Thank you
MichaelDC
New Member

I rent rooms and a car garage same property but garage rental not in connection with room renters. How do I prorate the garage if using number of rooms instead of S/F?

You can use any reasonable method for dividing the expense. While the most common methods for dividing an expense are based on the number of rooms in your home or based on the square footage of your home, you could use another way.

In some areas, non-airconditioned areas are given half the square footage when assessing property values. It would be sensible to assume that the Fair Market Rent of a garage would much less than a room in the house. In this case, in might be reasonable to use a Fair Market Rental method. For example, if you get $500 a month for a room and $250 a month for the garage, you might use that in calculating your allocation.

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