Rental Property Percentage

[MDFTAX]

Hello Community,

A owner lives in the below grade portion of his rental property that he owns and rents out to several roommates.

Shouldn't he still only deduct the portion of the repair/utility/maintenance expenses based on the actual square footage that is rented.

He was claiming 100% rented because he was only including the above grade square footage.

Shouldn't he deduct % of the space he lives in even though it is below grade. 

[IRonMaN]

You are correct.

[BobKamman]

What does "below grade" mean?  I picture a basement.  We don't have basements here, because of caliche. (You can look it up.)  But I have lived in basement apartments, and they cost a lot less to cool than upstairs.  Also, they can cost a lot less to heat if the radiator pipes are exposed and below the ceiling and not well insulated.  So sometimes you pro-rate based on percentage of square footage, but sometimes you pro-rate by guess and by golly.    

[MDFTAX]

Thank you IRonMaN for taking the time to answer my questions!

[MDFTAX]

Thanks!

Yes- that's a basement.