Should I depreciate my house if I live in it and rent out the other 2 rooms?
I plan on living in this home for a long time and intend to make the rent cover most if not all of the mortgage and possibly profit. Is it worth depreciating my home?
- TiLv 79 months ago
You will also have to pay taxes on your rental income.
- R PLv 79 months ago
You cannot depreciate the entire dwelling, only the portion that is rented. Even then, you have to recapture the depreciation as income when you sell the property.
Talk to a CPA and get more in-depth info on the subject.Source(s): FL landlord
- JudyLv 79 months ago
You could only depreciate the portion of your home that you rent out.
- 9 months ago
Depreciating your home is a fairly common practice when it comes to doing your income tax at the end of the year. Just make sure that you can easily tolerate your "room mates". Don't allow dogs unless you can tolerate the stench.
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- DzeLv 79 months ago
i did that for awhile, renters are a pita and breaking even is probably the best you'll do .. the best plan is to sell the place when the market is good and make enough to get something outright or you dont owe as much on .. now is probably better than later, recession is likely coming soon ..