@M-MTax - sorry but a gift is when there are no strings attached. There is a string here: a place to live at below market value.
Not a gift.
see page 24:
"Not Rented for Profit
If you don’t rent your property to make a profit, you must still report your rental income, however, you can no longer deduct rental expenses."
https://www.irs.gov/pub/irs-pdf/p527.pdf
