Secondary menu

Apartment in Primary Home: Reflect as Special Expenditure or as Property?

Is it best to treat the portion of my home that is rented as an apartment as a special receipt, or should I detail the expenses and rent revenues in the property tab?


Depends on how you're planning to treat the property. If you're going to apply depreciation, etc. you're best off using the real estate features and doing the necessary side calculations to split your home into two pieces, one your primary residence and one your rental property.

If you're just treating the rent as ordinary income, then going the special receipt route is best.

There are a lot of "gotchas" in the tax code when trying to treat part of your home as rental property so do some research and decide which is best for you.


Dick Munroe