You do not have Gift situation.
What you have is a Not-for-Profit rental.
You report the income as ordinary income on Schedule 1 Line 8. You report the expenses such as mortgage interest, property taxes as itemized deductions on Schedule A. The amount of expenses cannot exceed the amount rental income received.
See IRS Publication 527, Residential Rental Property page 16, Not Rented for Profit - https://www.irs.gov/pub/irs-pdf/p527.pdf#page=16
