Doesn't matter that it's less than the mortgage payment. Wouldn't matter if you were renting it for $1 a month. It's reported on SCH E in the Rentals & Royalties Income (SCH E) section of the program under the business tab. Nothing special here. Keep in mind that most likely you "WILL" show a profit. Remember, your mortgage payment is not deductible. Only the interest you pay on the mortgage is deductible. The principle part of your mortgage payment is not tax deductible, and in fact is taxable income to you.
