Carl - thanks for the response! "We" refers to my spouse and I. No business involved.
We originally stumbled upon this living arrangement and had no intent of making it into a rental property, our purpose was to live in it but it was a bit high for our budget (but still a good deal) so we just decided to rent out the rooms. Then the landlord sold it to us, and we continued to rent out the rooms. Now that we own the property (as of this year) it occurred to us that maybe this money is now taxable...
When the calculations are all done they pay us about 25k per year. They pay almost all of our mortgage (principal, interest, insurance, taxes). However they are each paying market rent for room rentals in the area.
