Investors & landlords

If  you rent it at less than fair rental value (FRV) then the income is still reportable and taxable, however it is reported differently.  See the information from IRS Publication 527.

• Not Rented for Profit
  If you don’t rent your property to make a profit, you can’t deduct rental expenses in excess of the amount of your rental income. You can’t deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.
  • Where to report.  Report your not-for-profit rental income on Schedule 1 (Form 1040), line 8. If you itemize your deductions, include your mortgage interest and mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses from your not-for-profit rental activity when figuring the amount you can deduct on Schedule A.

Essentially the expenses are allowed as itemized deductions if you use this.  If not, you would use the standard deduction and the rental income must still be included. Be sure to keep copies of any documents that would support your rental income and expenses allowed.

Other Miscellaneous Income:

1. Sign into your TurboTax Online account
2. Go to Tax Home (left panel)  Wages and Income  section
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (----) and the amount after direct rental expense.

@Clcole 

@Clcole