Talk of The Villages Florida

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Renting part of a home

You had best check out the IRS rules on mixed use property......renting it out part of the year.......and occupying it personally for part of the year....and, in this case, doing both simultaneously. Needless to say, the rent income you receive will be taxable....but, there are specific limitations and rules on what you may do....and NOT do with respect to deducting expenses

W.P. Bolash, CPA

Quote:

Originally Posted by ryoungs (Post 2034623)

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?

The IRS will love this.

One way you could possibly do it is rent out a suite, bedroom and bath, in your house. No mention of whether you’ll be there or not. Rent would be the same year round. You could rent out the owner’s suite, or the two bedrooms with a bath that could be closed off for privacy in many floor plans. Use your furniture, except in their room/s. Then you could come down for a week here and there as well as your three weeks a year. Insure it as you would renting out a room.

I’d start this arrangement when you are living there. This would make your frequent absence as pleasant surprise, and the renter would be less likely to assume the whole house is theirs.

Quote:

Originally Posted by ryoungs (Post 2034623)

One of my neighbors back north did something similar. He owned a house near Tampa that he rented out, with the provision that the tenant had to be out from December 15 to January 15. Mike and family used the place every year around Christmas to get out of the Chicago cold, and his tenant went elsewhere to visit kids for the holidays. This arrangement lasted at least 25 years.

I would not consider being either the owner or the tenant in this situation.

If I was the tenant I would absolutely not permit you & your to live with me. Even for free or even if you paid me to let you live w me

Quote:

Originally Posted by ryoungs (Post 2034623)

Like so many,"ideas," a truly simple way to understand the replies. Ask, would any sane person accept this offer?