If I were to have a SFR and it had a full basement with a kitchen, bathroom, etc, and I were to rent it out, what would be the best way to minimize/simplify tax on the rent money? I would still be living upstairs and would still have a mortgage. I probably wouldn't have much income besides the rental receipts.
I'm thinking about a FIRE scenario where we get an expensive house in a HCOL but rent out part of it because it's so expensive. The house belongs to my grandmother who would like to keep it in the family but I would have to buy it from the estate because it's her main asset and she has too many descendants for me to be in the will.
The math would probably be something like $40k in mortgage (with a large down payment) and $30k in rent. And taxes, insurance, repairs, etc would be on top of that.