House Hack Tax Deduction

[My Nguyen]

Hello fellow house hackers!

This is more of a tax savvy question.

I have my primary residence and currently renting out my studio basement. Can I deduct all the expenses (materials from Home Depot) from fixing and upgrade my basement for my tenant? Also, am able to I claim full depreciation on my tax return?

Thank you in advance for your input!

[Alex Fenske]

Should be able to expense or capitalize the work you do to the investment unit, and depreciate a prorated percentage of the property's value based on the sq ft of the investment unit relative to the whole. Same prorated deduction available for other expenses such as your insurance premium, utilities, etc. Ask a CPA to be sure though.