How much of insurance & depreciation can I deduct when renting a room?

[redman24]

What is the name of your state? USA

I'm renting a room in my 2 bedroom house. Here is the size breakdown:
20% of square footage: My private room
20% of square footage: rented room
60% of square footage: shared area (bathroom/kitchen/livingroom/diningroom)

for tax deduction purposes, do I understand correctly that I can only depreciate 20% of the home value, even though the renter uses the 60% shared space in addition to 20% private space?

Also, what percentage of the property taxex and insurance can I deduct?

 

[Taxing Matters]

for tax deduction purposes, do I understand correctly that I can only depreciate 20% of the home value, even though the renter uses the 60% shared space in addition to 20% private space?

Correct, because you have 80% of the space available to you for your personal use. The home insurance is handled the same way, you deduct 20% of it as a rental expense.

The property tax is different as that you can deduct in full even if you didn't have a renter.

See IRS Publication 527 for more information on the tax treatment of residential rental property.

 

[FlyingRon]

You should read this: https://www.irs.gov/publications/p527

To answer your specific questions, you can only take deductions for (depreciation or otherwise) on that part exclusively used by the rental use. So in your example, the 20% that belongs solely to the tenant. The shared space is treated as if it were just your own residence.

 

[FlyingRon]

he property tax is different as that you can deduct in full even if you didn't have a renter.

Eh? Perhaps not. He can certainly take the 20% ascribed to the rental use. The rest is subject to the cap for the rest of his state and local taxes.

 

[adjusterjack]

Also study up on Schedule E.

https://www.irs.gov/pub/irs-pdf/i1040se.pdf
https://www.irs.gov/pub/irs-pdf/f1040se.pdf

 

[adjusterjack]

Eh? Perhaps not. He can certainly take the 20% ascribed to the rental use. The rest is subject to the cap for the rest of his state and local taxes.

He can take the 20% on Schedule E and the rest on Schedule A (itemized) but that works if all of his itemized deductions exceed the standard deduction of $12,200 for 2019. If he doesn't itemize he just gets the 20% on Schedule E.

 

[Taxing Matters]

Eh? Perhaps not. He can certainly take the 20% ascribed to the rental use. The rest is subject to the cap for the rest of his state and local taxes.

The point is that the property tax deduction is not limited to just the 20% attributable to the rental. It is possible to deduct the entire amount assuming that you itemize deductions and, of course, there is a limit to the total state and local taxes that may be deducted as a personal (nonrental) expense.

 

[LdiJ]

The point is that the property tax deduction is not limited to just the 20% attributable to the rental. It is possible to deduct the entire amount assuming that you itemize deductions and, of course, there is a limit to the total state and local taxes that may be deducted as a personal (nonrental) expense.

I think that the point is that you are normally very detailed in your responses so that there is no room for any confusion. This time you were very brief and your comment about the property taxes definitely could have confused a layman.