Yes, if he is actually paying rent he would qualify for the rent credit
You would have to report the income and expenses on your tax return. If entering it as a Not-for-Profit rental (not charging him market rate for rent) you would have to manually prorate the whole house expenses for the amount of space he would occupy. (ex. he rents 200 sq ft of 1000 sq ft house, you would enter 20% of the expenses).
If you were charging him market rate for rent, you would report the rental on Schedule E.
Instructions for both scenarios are below. Please be aware that these instruction sequences are for the current year and may be different next year when you go to enter your rental information.
To report
Not-for-Profit (NFP) income in TurboTax
- Click on Federal Taxes
- Wages and Income
- You may need to click Jump
to Full List, Show me everything or I’ll choose what I work on depending
upon your situation and the TurboTax version you are using.
- Scroll to the very bottom;
Less Common Income; Click Show more (if start isn’t displayed)
- Click Start across from
Miscellaneous Income, 1099-A, 1099-C
- Scroll to the Bottom and
Click Start across from other reportable income
- At the “Other Taxable Income”
screen, enter your description – Not for Profit Rental and then amount of income you
received.
You can also enter your NFP expenses as part of Miscellaneous
Itemized Deductions.
If you want to enter your NFP
expenses:
- Go to the Federal Taxes tab
- Deductions and Credits
- Click “I’ll choose what I
work on”
- Scroll down to Deductions and
Credits
- Click Other Deductible
Expenses Start.
- At the “Less Common Expenses”
screen, say yes.
On the next screen you can enter your NFP Rental
expenses.
You will need to pro-rate your total expenses and only report
the portion that is allocable to the room you rented. If for instance, your
house has a total of 8 rooms than you would report only 1/8 of your expenses.
You can also use the exact square footage of the room versus the whole house if
you have those measurements.
Please click
here for more information on NFP Rental expenses
Your NFP Expenses amount will go to line 23 of your
Itemized Deductions Schedule A. If they are more than 2% of your Adjusted Gross
Income, they will be included in your Schedule A. If your standard
deduction is higher than your Schedule A (Itemized deductions), you will
use the standard deduction instead; TurboTax will default to the higher
deduction.
Here are the 2015
standard deduction amounts for each filing status:
- Single or Married Filing
Separate - $6,300
- Married Filing Jointly or
Qualifying Widow(er) - $12,600
- Head of Household - $9,250
Here's how to get started entering your rental.
https://ttlc.intuit.com/replies/3288530
