If you want to treat the rent as a business, and you are charging a fair market level of rent (the same as you would charge a stranger to rent a room with kitchen privileges and whatever else), then you could consider reporting it on schedule E (not C). However, if you are not charging a fair market rent, there is really no benefit to going to all the trouble. In the case of family sharing expenses, there is no requirement to treat family as a business (unless you want to).
