Rental percentage determination

[RightOn]

Taxpayer rents out part of her home. In order to determine the rental percentage, should we count the non-living area such as the garage, storage area, yards, etc of the house?

For example, the living area of the house is 1,000 square feet, the rental area is 500 sq feet so it is 50% of the total living area. The tenant cannot use the non-living areas such as the garage, storage area, front yard and the back yard of the house. And the total size of these non-living areas is 250 square feet.

In this case, should the rental percentage be 50% (500 sq ft/1,000 sq ft) or 40% (500 sq ft/1,250 sq ft)?

[Roland Slugg]

The latter ... 40% of 1250sf. Depreciation will be figured on the entire house, then allocated according to the portion rented. (You could figure it the other way, but the result would be the same.)

[taxea]

the living area only and in case of renting one room you don't include in the rental common areas such as shared bathroom, kitchen, livingroom, etc. Use only the private area of the tenant. This holds true for a home office unless there is a storage room or portion of any other area that is used strictly for the business.

[ATSMAN]

For shared rental calculation, I only use the area exclusively rented to the tenant. I do not count common areas such as hallways, stairs, decks.

Have been doing this for over 10 years now.

[RightOn]

For shared rental calculation, I only use the area exclusively rented to the tenant. I do not count common areas such as hallways, stairs, decks.

Have been doing this for over 10 years now.

Thank you.

But the question here is not about common area. It is whether the areas that the tenant does not have access to or is not allowed to use should be counted.

[Possi]

Roland's response

So, go back to Roland's response.

[taxea]

Okay let me be clearer:
When figuring a percentage for rental or home office only the main living area (livingroom, diningroom, den, bathrooms, bedrooms, kitchen of the home vs. the private use area is used to determine sq ft. Garage, carport, patio etc that is not normally considered living area is not included in the sq ft for percentage determining purposes.