House Hacking Through FHA

[Daija Nolcox]

Closing on my first home 2/3/2020 which is a MFH that I am house hacking. I was wondering how to make the rental aspect of my property a business since I couldn't technically take title in an entity because of FHA restrictions. Any advice?

[Dalton Dellinger]

Congrats on the house hack! I've done it for over 2 years now and love it. My wife: not so much. We bought it with an FHA loan in my personal name as well. We live in half a duplex so we can deduct half of the building costs as rental expenses. That also means half depreciation. If any maintenance issues happen in the unit we're living in, they are not technically tax deductible. But the other unit is. If any maintenance item to a common area is required, we generally have treated the entire expense as tax deductible.