BiggerPockets Daily 1237 - Tax Implications of House Hacking by Cyrus Vanover
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Mar 4, 2024 Learn about the tax implications of house hacking in real estate investing, including the importance of reporting rental income accurately to avoid audit issues. Explore various tax deductions available to house hackers, with expert advice on optimizing tax preparation and minimizing audit risks in the ever-evolving tax landscape.
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Tax Implications of House Hacking
- Consider tax implications before house hacking to accurately report profits.
- Underreporting rental income can lead to issues during audits.
Basics of Real Estate Taxation
- Understand real estate taxation basics and consult a tax professional.
- Tax laws change annually; stay updated and consider local, state, and federal taxes.
Allocating Expenses
- Separate personal and business expenses when house hacking for tax purposes.
- Calculate percentages of property used personally and for rent to determine deductions.