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Renting rooms in home owned by a trust. Trustee stays in…

Renting rooms in home owned...
Renting rooms in home owned by a trust. Trustee stays in home two days a week at most. Would the following be deductible as expenses. Homeowners Insurance, Utilities, RE Property Taxes, House Painting and if so at what percentage would you recommend?
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Answered in 3 minutes by:
3/18/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,627
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi. My name’s Lane …

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

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Tax rules apply to the trust in the same way as they do for individuals who rent out rooms. You deduct the expenses arising from your rental activity.

...

Here, you simply divide certain expenses between the part of the property you rent out and the part you live in or use personally, just as though you actually had two separate pieces of property.

...

Expenses for the property must be divided between the part you rent and the part use. This includes your payments for:

  • mortgage interest
  • repairs for your entire home—for example, repairing the roof or furnace, or painting the entire home
  • improvements for your entire home—for example, replacing the roof
  • homeowners’ insurance
  • utilities such as electricity, gas, and heating oil
  • housecleaning or gardening services for your whole home
  • trash removal
  • snow removal costs
  • security system costs, and
  • condominium association fees.

...

You can also deduct depreciation on the part of the property you rent.

...

The two most common methods for dividing an expense are either based on the number of rooms in the property or based on the square footage.

Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,627
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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