topic How to report rental income from a sublet in a home we bought in 2018 and also live in. We already own another home in another US state? in Investors & landlords

How to report rental income from a sublet in a home we bought in 2018 and also live in. We already own another home in another US state?

Mouliss — Sat, 01 Jun 2019 15:06:11 GMT

The second home was purchased in June 2018 and sublet tenant paid rent for 4 months in 2018.

Is this new home now your primary home or is the other ho...

Coleen3 — Sat, 01 Jun 2019 15:06:13 GMT

Is this new home now your primary home or is the other house your home?

We occupy both homes. It is the second home purchased in...

Mouliss — Sat, 01 Jun 2019 15:06:16 GMT

We occupy both homes. It is the second home purchased in 2018 that has a sublet tenant.

You will consider the second home to be part personal, pa...

Coleen3 — Sat, 01 Jun 2019 15:06:17 GMT

You will consider the second home to be part personal, part rental. On the screen shot below, you will see "I rent out part of my home". Select that.

You must divide the expense between rental use and personal use. You can use any reasonable method for dividing the expense. It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them. The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home.

Only the exclusive used area is considered rental area.

Common area is available to all and is not a factor in allocation of expenses.

Renting Part of Property

http://www.irs.gov/publications/p527/ch04.html#en_US_2014_publink1000219159