Scehdule E - room in house rental

[David Walker]

A friend of mine is renting a room in his house. Properly filling out the
Schedule E seems complicated. Specifically, the questions are:

1. can any expenses be deducted on both Schedule A and Schedule E (i.e.,
mortgage interest and taxes?) (I pretty sure not, but he did that
last year...)

2. can a portion of the home be depreciated for a dedcution? How will this
affect his basis or gain in the future when he goes to sell the house,
which is his primary residence?

Thanks in advance for any responses.

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David Walker dswa...@panther.us.com
San Jose, California

[TaxService]

In article <4keae6$2...@samba.rahul.net>, David Walker
<dswa...@panther.us.com> writes:

>1. can any expenses be deducted on both Schedule A and Schedule E (i.e.,
> mortgage interest and taxes?) (I pretty sure not, but he did that
> last year...)
>

YES - RENDER UNTO RENTAL THAT WHICH IS RENTAL INCOME AND EXPENSE ON
SCHEDULE "E" AND TO PERSONAL, THAT WHICH IS PERSONAL ON SCHEDULE "A"

>2. can a portion of the home be depreciated for a dedcution? How will
this
> affect his basis or gain in the future when he goes to sell the
house,
> which is his primary residence?
>

A PORTION OF THE HOME MUST BE DEPRECIATED. IF IT IS NOT, IT MUST BE
SUBTRACTED FROM THE BASIS (WHEN THE PROPERTY IS SOLD). DEPRECIATION
ALLOWED OR ALLOWABLE MUST BE CONSIDERED AT THAT TIME.

"Jack"

John H. Fisher - TaxSe...@aol.com