Primary Residence Rent

Forum|Forum|5 years ago
January 15, 2021
3 replies
9 views

I am a California homeowner and share a home with a roommate. We have an agreement for monthly rent although we share the dwelling and expenses. Is this taxable?

MarilynG

Level 15

If you want to report renting out part of your home as Rental Income, you can report the income and deduct a proportionate share of expenses against the income.

You can elect to have TurboTax calculate amounts for you.

Click this link for more info on Renting Out Part of Your Home.

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Cameron_parkerAuthor

Level 2

I actually would prefer not to include this as income since this is not an investment property for me. It’s my home that I share and have my roommate compensate me essentially for covering part of my mortgage.

JeffreyR77

Level 10

You can treat the amount received from your roommate as shared expenses and not taxable income.

If you want to consider the amount received as rent, then it would be a not-for-profit rental which is covered in IRS Publication 523 on page 16.

Otherwise any amounts received from your room-mate is shared expenses and not reported on your federal tax return.
You can still deduct the mortgage interest and property taxes as itemized deductions on Schedule A of the tax return as the owner of the property.