General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 5 years ago on . Most recent reply
House hacking my CPA says don't claim rental income
I have a one family house renting out the top living in the basement. My CPA says when I file I should not file showing the rental income because if I want to sell then I will not get the 250,000 tax free allowance. I don't think I'll be selling my house. Any thoughts or experiences on this topic would be appreciated. Thank you.
Most Popular Reply
- Tax Strategist| National Tax Educator| Accepting New Clients
- 4,484
- Votes |
- 3,738
- Posts
Boy is there a lot of incorrect information here.
Including what your CPA suggested- He's right in that if you report part of the home as a rental...now only your personal portion will qualify for the 121 primary home exclusion.
However- what he's suggesting is tax fraud. Suggesting to just not report thousands of dollars of income? Jeez.
You need to report that portion of your property as a rental. You need to take depreciation on that portion. Setting up and LLC or any thing like that wont change any thing.
