My niece is a tenant in my mortgaged home. For her room, 17% of home sq', can I claim 17% of the mortgage interest on schedule E and 83% on schedule A?

Forum|Forum|4 years ago
February 3, 2022
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AmeliesUncle

Level 15

If it was rented the entire year, yes.

Mike9241

Level 15

not only does she have to pay rent but the rent paid must be fair rental value

then not only can that portion of the mortgage interest be taken on schedule E but also a pro-rata portion of other expenses like utilities and you must take depreciation on that portion.

Mike

marcjy1Author

Level 4

Thank you, on my taxes last year I applied the 17% to the expenses of her room on Schd E.

My taxes show a 33% depreciation on my home.

Do I apply that 33% on the room's expenses? I don't understand.

Carl

Level 11

My taxes show a 33% depreciation on my home.

Can you clarify that? That seems so far "out there" and off base. At best, only 3% of the structure value is depreciated each year. In your case, only 17% of that 3% would be deductible as depreciation.

To understand where I'm coming from, see IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf

Use the worksheet that starts at the bottom of page 38. The table that applies is table A-6 on page 73.

My guess is that what you figure manually and what the program figures will be vastly different.