Tax Tip of the Month: Tax Implications of Renting a Portion of Your House

With the increasing popularity of websites like Airbnb and VRBO, more and more people are renting out a portion of the homes they live in so that they can make a little extra money every month. However, if people aren't aware of all of the tax implications of renting a portion of their home, they could be leaving a lot of money on the table by not taking advantage of available tax deductions. For example, here are just a few of the deductions that people renting a portion of their home can use: They can deduct a portion of their utilities like heating, water, and electricity. They can deduct depreciation on the part of their property used for rental purposes They can deduct 100% of the cost of maintaining the part of their property used for rental (for example, the cost of painting a room being rented out). If you rent out a portion of your property and want to make sure you are taking advantage of all available tax deductions, contact us for a consultation.

Leave Us A Review At Benjamin H. Johnson CPA, we love getting feedback from our customers. Let us know how we're doing by leaving us a rating and review. It not only helps us improve our service, it also helps other people make a better buying decision. Click here to give us feedback.

Picture of the Month For this month's picture, enjoy the photo below of wild Black-eyed Susan flowers on Ben's farm.

Latest Firm News

At Benjamin H. Johnson CPA we are always seeking ways to improve the quality of service we deliver to our clients. You may notice one change we recently implemented, which is a new billing system for our clients that includes more information and details on the bill. In the future, this system will also allow us to let clients who wish to receive their bills via email to do so. Speaking of services that help our clients, we have observed that the secure online portal we can set up for clients has been especially helpful to people who have mobile businesses (such as truckers). It makes things much easier for them when communicating with us. If you aren't taking advantage of our portal system yet and would like to do so, contact our office.

Featured Video: Payroll Services for Small Business In this tight labor market, keeping your employees happy so that they don't look for work elsewhere is critical, and part of that means making sure they get paid on time. Watch the video below for more information on some ways we help businesses with their payroll.

Featured Resource: IRS Publication 527--Residential Rental Property

In our tax tip of the month, we mentioned that there are many tax deductions available to people who rent out a portion of their home. The place to learn about these deductions is IRS Publication 527 , which is available online. It covers just about everything you might want to know about tax implications of renting residential property.

Featured Customer: Third Street Brewing Company

It's been pretty hot lately, but the good news is the beers at Third Street Brewing Company are just as cold as ever, and are even more refreshing at the end of a hot day. Be sure to stop by for a $2 pint fill on Flagship Wednesday or enjoy some live music on a Friday evening. Check out their calendar of events to see what's going on this week!