When you rent a bedroom in your home and that rental unit creates a tax loss, can you deduct the loss?
Yes, if you meet the four technical requirements listed below:
You rented your bedroom as if it were a hotel and materially participated in the rental. Assuming you were in this activity to make a profit, you qualify to deduct all of your expenses of rental against the rental income. If that creates a loss, you deduct the loss against all your other income.
If you want to discuss the tax implications of bedroom rentals with me, please call me on my direct line at 408-778-9651.
Silicon Valley
111 N Market St, Ste 300
San Jose, CA
Sacramento
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Copyright All rights Reserved. Financial Dream Team, like all providers of personal financial services is required by law to inform their clients of their policies regarding privacy of client information. The information in this material is not intended as tax or legal advice. Financial Dream Team, USA, LLC is a registered business in Califronia. Provided content is for informational purposes only.