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Updated about 5 years ago on . Most recent reply
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Claiming loss on a house hack using DMSH. Also, CPA or TurboTax?
Since tax season is coming up in a couple months, I want to make sure I understand my optimal tax strategy.
I will be claiming the standard deduction (12K) on my personal tax filings. No way I can match this amount with itemized deductions.
I am renting out one bedroom of my 2b1b, which means I can deduct half of my business expenses. I started renting the room Aug 18th last year and made $2750 total. These are my itemized business deductions:
Chimney Fix - 2250 / 2 = 1125
Water Heater - 1640 / 2 = 820
Dryer - 900 / 2 = 450
Property Taxes (5 months) - 1000 / 2 = 500
Mortgage Interest (5 months) - 2000 / 2 = 1000
Total deduction = 3895
Therefore could I claim a loss of ($2750 - $3895) = $1145?
And on a side note, is it worth getting a CPA for my house hacking situation or is it simple enough for TurboTax?
Thank You!
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@Eamonn McElroy
Thanks for the insight. I imagine that taxes will only get more complicated as my portfolio grows, so I agree that forming a long term relationship with a CPA is beneficial to both parties.