Taxes and renting a room out in my home?

[Account Closed]

I rent a room out in my SFH. It is currently rented for $100 per week. How will this affect my Taxes? Will I be able to deduct a portion of my mortgage and property tax as a cost of business? What other implications will this have?

[Brian Schmelzlen]

Yes, it is taxable income to you. It will go on Schedule E of your tax return. You are entitled to deduct all the direct costs associated with the rental as well as the indirect costs such as a portion of your mortgage and property taxes. To determine a reasonable percentage, I like to look at the ratio of square footage in the rented room versus the entire home (for during the rental period only if it wasn’t rented for the full year).