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based on a court case Jackson, TC Memo1999-226 the answer is yes unless you can make a good argument that the rent only covered additional out-of-pocket expenses, ie cost sharing. Hard to prove. don't report on schedule E but as misc income not subject to SE tax. 

 

the court case in brief: rented at less than FMV to parents (wouldn't matter if they were friends and not family). all use was deemed personal use thus no rental expenses (Schedule E) were allowed (deduction for interest and taxes were  allowed on Schedule a) and the taxpayers had to include the rent in income.