Sorry I didn’t give more info… It’s a second home, and it’s paid off. It’s not a “rental home”, it’s just a house we own and visit sometimes. My son is paying less than “Fair Market Value”, and looking online it appears we don’t have to claim this as income as long as we don’t claim any expenses like one would do with a rental. We do not have a rental contract.
The reason I don't think we pay taxes is because this falls under "Personal Use" looking at Publication 527 and go to the section "Dwelling Unit Used as a Home" >> "What is a day of personal use" #2. Since he's paying less than Fair Rental Price, we'd fall under "Personal Use". If that's the case for "Reporting Income and Deductions" I would think this would fall under:
"Used as a home but rented less than 15 days.
If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function isn’t considered to be rental and it shouldn’t be reported on Schedule E (Form 1040). You aren’t required to report the rental income and rental expenses from this activity. Any expenses related to the home, such as mortgage interest, property taxes, and any qualified casualty loss, will be reported as normally allowed on Schedule A (Form 1040). See the Instructions for Schedule A for more information on deducting these expenses."
