House hackinging taxes and standard deduction

[Andrew S.]

Good evening BP community,

I'm preparing all my tax documents prior to meeting with my CPA and I'd like to show up to the meeting prepared.  Appreciate your time reading through my questions.

Last year I purchased a duplex and renovated both sides.

Upstairs:

$4875 in repair costs before in-service: Add to basis

$2030 in repair costs after in-service: Repair

Downstairs:

$8650 in repair costs before in-service: add to basis

$4350 in repair costs after in-service: repair

Itemized deductions

-Mileage $350

-Travel $482

-Utilities $160

-Mortgage interest: $775

-Taxes: 630

-Insurance $450

Turbo tax recommends I take a standard deduction $12,000 for a single. If it makes sense to claim the standard deduction, do I still need to submit detailed records of what could've been itemized deductions?  I assume not.

Based on my expenses, does it seem reasonable to claim the standard deduction?  I think so.

I have these detailed records, is there a need to retain these documents?  I will keep them, but it seems like the standard deduction won't require me to keep these records - giving me less risk of an audit and simplified taxes.

If I have an expense that was made is in the gray area of capital vs repair categories - it would be more beneficial to claim it as a capital expense and add to my basis assuming I'm claiming the standard deduction, correct?

Regardless of choosing between itemized or standard deduction, that decision is independent from ability to depreciate the flooring, cabinets, countertops, etc.

House hacking roommate expenses division: (Curious if this seems reasonable)

My side has 8 rooms: (3 beds, 1 bath, kitchen, laundry, dining, living room)

Tenant lives in 1 room and uses other spare bedroom for 100% his storage.

Tenant uses:

2 full bedrooms @ 12.5% each so 25% total rooms

50% of 5 common area rooms @31% total rooms

56% of my side of duplex is "rental property"

Thanks much!!

Andrew

[Shawn Mcenteer]

This is the exact reason why you have a CPA.  Go to your meeting with this and ask the questions.  FYI turbo tax wanted me to owe money last year my CPA ended up getting me a lot back! She works with investors, I hope you have a legit CPA and you are just referencing turbo tax not planning on using them.