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We have a 1099 for about 5000 for hosting a student, definitely did it to make a little money, and we have lots of expenses, including food, transportation and we added some walls and a window in our house to make a bedroom for her. We also live in a two flat (and rent half) so already claim half of the taxes, interest, etc to claim a loss on that rental. What kind of income is it? and where do we claim our expenses? and what about the renovation on our house?