Question Regarding Depreciation

[Michael Moreno]

Hi everyone,

I own a 3-bedroom, 2-bath single-family residence that I purchased in September 2023. I currently rent out two of the guest rooms and am living in the rest of the house. I understand that I need to prorate my expenses based on the square footage that is being rented out.

However, I plan to move out soon and rent the entire house. Since I started renting out the house in May 2024 and will likely move out in 2025 after the leases for my current renters end, I have a question about depreciation.

Can I depreciate the portion of the house that was being used for personal use, even though I was living in the house for part of 2023? Specifically, am I able to depreciate the square footage I couldn't claim depreciation on from 2023 for the 2024 tax year, given that I couldn’t claim depreciation for that period?

Thank you for your guidance!

[Michael Plaks]

Quote from @Landon Mizuguchi:

@Michael Plaks if you're living in the house and renting rooms  (e.g. room hacking) you can't claim losses? 

Yes, literally what I said. Or, rather, what the tax code said.