Are second home expenses still deductible? My daughter lives in it and pays below market rent.

[Coleen3 · Accepted solution]

For a Not-For-Profit rental, the only deductible expenses are mortgage interest and property taxes, by treating it as a second home. Any other expenses were eliminated with TCJA 2018.

[steve20]

Do I include the money she pays as income?

[Coleen3]

Yes
To report:
• Click on Federal Taxes
• Wages and Income
? You may need to click Jump to Full List, Show me everything or I’ll choose what I work on depending upon your situation and the TurboTax version you are using.
• Scroll to the very bottom; Less Common Income; Click Show more (if start isn’t displayed)
• Click Start across from Miscellaneous Income, 1099-A, 1099-C
At the “Other Taxable Income” screen, enter your description – Not for Profit Rental and then amount of income you received.