[Kathy]

I know y’all are not my accountant, nor attorney, but I appreciate your opinion, and I am learning tremendously from all of you.

I have a second bedroom in my condo. Currently, it is split between two businesses that I run and I am able to take off the full benefit of that for those businesses.

However, I need to do catch-up for retirement. So I am considering renting the room out to traveling nurses. So that would be income. Which is better, the deduction for the businesses or income?

Thank you.

[Jennifer]

Will you stop your businesses? If not, what space will you have for them?

You could run your taxes without the home office deductions to see how much it really saves you.

[Melissa]

As a travel X-ray tech here I will remind you that income from that is taxable. But increasing income is almost always a good way to increase income to contribute to whatever account.

[Tony]

Almost definitely renting. Don’t forget renting a room comes with its own set of deductions. ‘ve been renting a room in my home to nursing students for 6-7 years now, and I deduct a portion of utilities, rent, taxes, repairs/furniture purchases for the room, cleaning materials and services, landscaping/lawn maintenance, etc.

It’s not hard to find ways to offset much of the costs of renting a room through deductions.

Don’t miss: Is rental income a better investment than the S&P 500?

[Mitchell]

Has a lot to do with how much revenue your businesses are bringing in. Why not throw that biz income in a SEP plan and with deductions, break even or go into the red a pinch.

[Linda]

Can you also look at your previous returns to see how much those deductions are really worth. We are considering renting out an in law apartment in our house using Furnished Finder. I posted on there to see if anyone had gone down this road before but go no response. If you do rent out, please post about your experiences.

My guess is you will net significantly more by renting the room out.

[Ron]

Not enuf info. How much does the room being written off as a business expense drop your net income? This is contained on your schedule C of your income taxes. And how much net income will you generate if you allow travel nurses to stay in your apartment?

Be sure to make sure you are allowed to rent out rooms in your apartment complex. You do not want to void your lease and be evicted. Travel nurses are always pretty conspicuous when they arrive dragging the suitcases and other paraphernalia…and neighbors are nosey and will report you.

[Justin]

Odds are your increase in income is better than your Tax savings.

The goal is to earn and keep as much money as possible.

[Author]

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