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Updated almost 3 years ago,
is the income from my "house hack" not for profit income?
Looking for guidance for how to handle rental income on my tax return this year:
- 1. Rented a room in my town home to a friend from May 2021 to December 2021. I live there as well.
- 2. Made around $3k in rental income (she paid significantly below fair market value- rented to her as more of a favor/ help with my mortgage than to make a profit). A townhome like mine goes for around $1,600 per month.
From what I've researched it seems like this income would be considered "Not Rented for Profit" (IRS Publication 527) and included on Line 8 of Form 1040. I will not itemize (my only itemized deductions are my mortgage interest and mortgage insurance and its well below the standard deduction).My question is: Am I handling this correctly from what I've researched and is there any other rental deductions I can take? Any other guidance would be very helpful! Thank you!