Do I need to report rental income from a friend if we are sharing the house?

Hello,

I recently bought a house in Connecticut. I didn't realize until I saw it online that even if you rent a room out to a friend that counts as income. I understand the basics of that rule.

What are the exceptions?

My friend is 27 and lives at home with his parents but needs to be closer to work. He currently drives 1-2 hours based on traffic. I was thinking of charging him below-market rate for the house ($550/month for a newly refurbished house when the luxury apartment building down the street cost $750-$1400/month depending on the bedrooms). Now that I know I need

If we had a verbal agreement that he is in charge of paying utilities, internet, propane tank lease, cable, and the tankless boiler fee (basically anything that wouldn't be collecting money for myself but him do his share of paying the bills that go directly to a company) would I have to report that as income?

A different example: If I have a tenant sign a lease for $400/month (way below market value) but they pay gas and electric every month who only the $400 be income or all of it?

Another example: Can I have my friend live in my house without a lease and pay just utilities but no rent to avoid paying taxes in that but also have a tenant sign a least and pay $700/month (market value)?

I appreciate any help! If possible I am looking for direct tax codes so support this and make a decision.