If I owned a home with 5 rooms and 3 bathrooms and 4 rooms and 3 baths were used by my tenants how do I figure out what % if used for my schedule E Deductions

Forum|Forum|4 years ago
April 15, 2022
2 replies
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Can I use the per room method or must I use Square feet

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AliciaP1

You cannot use the per room method. You need to calculate the square footage compared to your total living space square footage to get the percentage of the rental to apply to your expenses.

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apple101123Author

Why isn't the per room method allowed, I thought the IRS allowed that as a reasonable method. how would I calculate after getting the square footage of each space rented does this include the kitchen and living room that's used and shared with the tenants?

LeonardS

No, the IRS only allows usage as a percentage, not by the room count. You will apportion the common area by percentage also. For example, if the shared common area is 200 SqFT and it is used equally then 100 Sq Ft can be allocated to the rental area that is solely used for rental purposes.

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AmeliesUncle

For rental space, you only include space that was used EXCLUSIVELY for rental. So if you also used the space (as a 'shared' space), that does NOT count (although there is some flexibility for that for some things, such as utilities).