Uncle Sam allows homeowners to prorate the following costs of being a landlord:
- Utilities
- Homeowner’s insurance, along with related riders and policies
- Depreciation
- Property taxes
- Property maintenance like exterior and interior painting and landscaping costs
The deduction depends on what percentage of your house you rent out. For example, if your home has a full basement that’s rented out, you’ll be able to deduct half of your expenses. Or if you have a 2,900 square-foot home and rent out 800 square feet, your deduction will be 28 percent.
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