I saw the response below in a post but I found my Form 1040 line 21 is for refund amount. Why is that? Where should I report Not for Profit Rental Income.
"Basically, you had a not for profit rental. Out of around 36 months, you had a tenant for 5 and a relative for the entire rest of the time a less than full rental value. The way it should have been done is below. I don't know what each return looks like but I'm pretty sure you will need to amend. Since you do not carry on your business or investment activity to make a profit, you cannot use a loss from the activity to offset other income. You do not therefore, need to depreciate.
Not Rented for Profit
If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. You cannot 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 Form 1040 or 1040NR, line 21.
If you are filing Form 1040 and you itemize your deductions, you can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Schedule A (Form 1040). "
