Renting out an ADU or guest house
Varies
Can You Write Off Renting Out an ADU or Guest House?
Short answer: Yes: an ADU's rent is income, and you deduct its expenses plus depreciation on the ADU's construction cost over 27.5 years.
Shared costs like the property tax bill are split between your home and the ADU.
Records to keep: Keep leases, receipts, a log of repairs vs improvements, mileage to the property, and closing statements.
BW-B23-01698
medium risk
Renting out an ADU or guest house
Varies
Real Estate / Landlords / Property Managers / Agents
Rent & Facilities
Rental Property Write-Offs
Yes: an ADU's rent is income, and you deduct its expenses plus depreciation on the ADU's construction cost over 27.5 years.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: an ADU's rent is income, and you deduct its expenses plus depreciation on the ADU's construction cost over 27.5 years. Shared costs like the property tax bill are split between your home and the ADU.
Category
- Rental Property Write-Offs
rental property
search demand 2026 b23
rental income
losses vacancy