If you are renting to a family member at a rate under the fair market value, then you would enter the income as Other Income as the IRS considers this personal use and does not consider this rental income, however it is still taxable income. You will enter this by selecting the following:
- Federal
- Income and Expenses
- Scroll down to Less Common Income and click Show More
- Start next to Miscellaneous Income
- Start next to Other Reportable Income
No, you would not be able to deduct utility expenses or any other expenses you can normally charge as a landlord since it is considered personal use property.
However, if you are simply sharing expenses such as in a roommate or housemate situation, then this would not be considered income, and you would not need to report it. You still would not be able to deduct the expenses, but you also would not have to report the income.
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