Asked by J

Rod rents out a room in his house. His house has 2,500 square feet of total floor space. The room that he rents is 500 square feet, or 20% of the home. Rod rented the room out for the entire year. As part of the rent, the utilities are included. If Rod's water and electric bills totaled $3,600 for the year, what amount can he deduct as a rental expense for utilities?
$0
$720
$1,800
$3,600

All Answers 1

Answered by GPT-5 mini AI
$720

Reason: The rental portion is 500/2,500 = 20% of the home. 20% of $3,600 = $720 deductible as a rental expense for utilities.