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 21 or Form 1040NR, line 21. If you itemize
your deductions, include your mortgage interest
(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
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/p527.pdf">https://www.irs.gov/pub/irs-pdf/p527.pdf</a>
