Thanks for that info, this applies to me, as well. I'm renting my ADU to my brother and he is paying below market rent, so it sounds like I won't be reporting that as income (in California). Follow up questions: What qualifies as a "rental expense" and how do you deduct that from your taxes? And for "deducting up to your rental income", is that for the year or the month-by-month amount? Example: My brother pays me $900 per month. Would I deduct $900 in "rental expenses" from taxes, or up to $10,800 for the year. Thanks!
