Deductions & credits

Who owns the house and is your daughter paying below rent that is below market? If she is paying the mortgage on your behalf and number is below market value, the discussion at @VolvoGirl's link is the same thing. 

 

Assuming that you own the property and your daughter is your tenant paying below market rents

 

1) the rent (which in this case is the mortgage payments she is making on your behalf) is INCOME to you. It does NOT get reported on Sch E, but rather is a "other" income item that can be reported on Line 1z of Form 1040.   

 

Schedule E is for rental real-estate, but in this case all you have is personal use property.  It would not be technically "rental real estate" because it is not rented at fair market value.

 

2) since she is paying below market rent and is a family member all the days she rents are considered "personal use days".  That means that none of the expenses of maintaining the home are tax deductible.  You can, however, deduct the mortgage and property taxes on Sch A, if you itemize.   

 

The 'personal use days' designation has no impact on whether the rent is reportable as income; it is reportable.