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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I rent rooms in my home (mostly to foreign students). Is

Customer Question

I rent rooms in my home (mostly to foreign students). Is this income taxable? These folks share my refrigerator and the rest of my home and are like roommates. - Carla
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: My other income is Social Security and a pension from the City of Seattle.
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Customer: No
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Submitted: 4 months ago.
Category: Tax
Expert:  Lev replied 4 months ago.

Is this income taxable? - yes - that is taxable rental income.
You may deduct corresponding rental expenses.

These folks share my refrigerator and the rest of my home and are like roommates. - you would need to apportion all your expenses as personal and rental.

Personal living expenses are NOT deductible - but rental expenses may be deducted against your rental; income.

Expert:  Lev replied 4 months ago.

If you rent part of your property, you must divide certain expenses between the part of the property used for rental purposes and the part of the property used for personal purposes, as though you actually had two separate pieces of property.
You can deduct the expenses related to the part of the property used for rental purposes, such as home mortgage interest, qualified mortgage insurance premiums, and real estate taxes, as rental expenses on Schedule E (Form 1040). You can also deduct as rental expenses a portion of other expenses that normally are nondeductible personal expenses, such as expenses for electricity or painting the outside of the house.
There is no change in the types of expenses deductible for the personal-use part of your property. Generally, these expenses may be deducted only if you itemize your deductions on Schedule A (Form 1040).
You cannot deduct any part of the cost of the first phone line even if your tenants have unlimited use of it.
You do not have to divide the expenses that belong only to the rental part of your property. For example, if you paint a room that you rent or pay premiums for liability insurance in connection with renting a room in your home, your en-tire cost is a rental expense. If you install a second phone line strictly for your tenant's use, all the cost of the second line is deductible as a rental expense. You can deduct depreciation on the part of the house used for rental purposes as well as on the furniture and equipment you use for rental purposes.


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