Renting a portion of your home

Special rules apply when renting a portion of your primary residence or second home. Expenses relating to common areas that are shared by you (or your dependent) and other tenants are not deductible. If you have a property with mixed personal and rental use, please let us know on your tax organizer, so we may properly report the income and deductions relating to the rental portion. We will need the square footage of spaces rented to unrelated parties at fair market rent, the square footage of spaces rented to related parties (if any), and the square footage of common areas, which should total to the total square footage of the rental property. If renting to related parties (such as a dependent or other relative), unless fair rental value is collected, there may be additional limitations on deductions. See comment below regarding renting to related parties.