@Craig JonesI'm also in Tahoe / Reno and this is a great tip. 

I'm excited to be back on this platform!

@Shannon Brill I think you might be overthinking this for a duplex.

I just completed my 2023 return and the amount of information in a return can really give you some clarity on your business. 

I am trying to get an idea of how to get a license from the state, but it is hard to find good information.

I appreciate the tip!!

And if there is a smart way to approach this, I would like to know about it.

@Chris SeveneyI do want to minimize liability considering I intended to have multiple properties under one LLC capped at 10 just because somewhere along the line I was told this is good practice.

I have to pay state and county taxes and also do direct bookings, so I found this to be easiest for me to handle each quarter. 

The way to handle it is to allocate expenses based on the percentage of the home’s square footage used for rental purposes.Here’s how it works:Calculate Rental Percentage: Add up the square footage of both the in-law suite and the rented room, then divide by the total square footage of the house.Apply This Percentage: Use this rental percentage to deduct a proportionate share of expenses like repairs, utilities, and mortgage interest.This post does not create a CPA-Client relationship.