I own a multifamily house. I rent out one unit and report taxes as I should. The other unit I live in, and it has 4 extra rooms that I rent out. Questions:
1. Will I have to report the income from the rooms in my own unit (the house is also my primary residence for tax purposes). 2. If I report all income, how can I figure out if deductions will outweigh tax on the rental income? The rooms generate $2900 per month, and will leave me with 1 room in the unit, or 1/5th of the unit.
Thanks for your help. Unfortunately the CPA I chose to work with is a glorified version of turbotax that charges full CPA rates with no solid advice. Any advice on how to choose a good CPA would be great too!