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Updated 10 months ago,
How to claim our business use house hacking?
Hello - I have a somewhat unique situation that I am unsure how to best claim on our jointly filed tax return. My wife and I are based in Florida and work as non-profit business consultants. Last year we had a client in Ohio which needed us to be on site for half the year. We knew well in advance that this was coming, so in 2022 we purchased a duplex which needed a lot of work, did some intense rehab to it and furnished both units. We are all in for about $60k (not counting utilities).
When the contract began in 2023 we were able to stay in 1/2 of that property and listed the other unit on Furnished Finder (unfortunately, no one actually rented the other unit). We have completed our contract, sold the furnishings, and now both units are listed as long term rentals.
Renting from someone else during the term of the contract would have cost us at least $10,000. It seems to me that some portion of the house purchase/reno/outfitting should be able to be claimed as a business expense, but I have no idea how to correctly do so.
Any ideas?