Are you considering house hacking? People have been sharing their homes for ages, but it has become much more popular with the rise of the sharing economy and the recent coining of the phrase “House Hacking,” which describes renting out extra rooms in your home, or renting part of a multi-family home while living in the other part. It’s a great way to make homeownership more financially feasible, but it can also make your tax situation much more complicated. Sharing part of your home and collecting rent means that you will have to claim rental income on your taxes, but you will also have the opportunity to deduct some or all of your expenses, such as the common homeowner deductions of mortgage interest and property taxes, along with rental expenses like repairs and maintenance, insurance, and utilities.
If you’re considering house hacking your own home or buying a property for the purpose of house hacking, it’s important to talk to a qualified CPA, to understand how it will impact your tax situation and to learn how to maximize your allowable tax deductions.
For additional information contact Amy Breyer, CPA at firstname.lastname@example.org
Read about Amy’s house hacking experience on Nerd Wallet here