Friday, March 23, 2012

Renting out a Room in your House

Q.  This past year I rented out two bedrooms in my house. I've been told I can write this off and possibly get a deduction on my income tax return. How can this be done?

A.  There are many considerations to take into count, and I cannot possibly address them all. I can tell you rules for renting out rooms in a house come under the Vacation Home Rules. Most of your expenses will need to be allocated, and you will not be able to take a loss to offset other income. I strongly suggest you download Publication 527 and faithfully follow the guidelines to stay out of trouble.

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