Rental Income questions!

[hannahstawski]

My husband and I rent out our basement apartment. Our basement apartment is 45% of our house. Does this mean we can only claim 45% of the maintenance receipts for the apartment? Are we allowed to claim 45% of our utilities (we pay, its in the agreement), our property taxes, our home insurance, and mortgage interest?

[TurboTaxTerry · Accepted solution]

You can deduct 100% of maintenance costs exclusively tied to the rental unit in your home. But either zero percent (cost related to your personal area such as a repair to your appliances) or 45% (cost related to the over all house such as furnace repairs). Other costs shared for the property such as you mention, property tax, insurance, utilities (one bill for the house) and interest on your mortgage (but not principal) will be claimed at the 45% proration.