i see issues. you are the owner, not the family member. the tenant who I assume is not related is paying rent. is the rent fair value? who pays the expenses such as taxes, mortgage interest, repairs maintenance, utilities, insurance etc.
if fair rental is being charged, I believe that since you are the owner you need to report the rental income. the family member needs to supply you with a list of expenses paid for you. which you then report on your return.
you are also required to take depreciation.
if this is not the first year consult a pro, you have a tax mess on your hands
