I have a resource that I utilize for both personal use and resource sharing. How do I allocate the separate uses so that I pay the appropriate taxes for each use?

These guidelines will focus on the two most commonly shared resources: automobiles and homes.

Generally, expenses related to a resource that is used for both personal and business purposes can only be deducted for the business purpose of the resource. It is critical that you keep detailed records of the total costs of maintaining your resource.

For example, if you are using the same car for business and personal use, only the expenses related to the car’s business purpose may be deducted. Similarly, if you are renting out a room in an apartment you are living in, only the expenses that are apportioned for the business use of the apartment are deductible.

For more specific information on the taxation of shared resources, please consult a professional. Be aware that Home Office deductions are a MAJOR area of IRS audit.

[IRS]: Deducting Car Expenses.

[IRS]: Personal Use of Dwelling Unit (Including Vacation Home.)

The foregoing is not intended to be, and should not be construed to be, tax advice. This website offers general answers to general questions based on information obtained from www.irs.gov and other publicly available information. Collaborative Fund cannot be held responsible for the results of any position taken on a tax return by any user of this site. Users should always obtain independent tax advice from a qualified tax professional to determine the tax consequences applicable to such user’s personal situation.