How do I enter below fair market value rent on line 21 form 1040 using step by step

[rmfitzgerald]

Where can I report Real Estate taxes on a rental property that I rent out to a relative below fair market value?

I own a house that I rent out to my mother. As the rent is below fair market value, Turbo Tax tells me that I can't report it under Real Estate income/expenses, and that I should report it in a 1099-MISC. Where then can I report the property taxes I've paid on this rental property?
If you are renting at below fair market value you would report the revenue as other income on line 21, deduct mortgage interest and property taxes on Schedule A.

By: TurboTaxAndrea2

[MichaelDC]

When you rent below fair market price, you would be considered to be renting "not for profit."

If your expenses (mortgage interest plus property taxes) were more than the rent you received, you are not required to report the income.

Otherwise, the rental income for this period is reported as Miscellaneous Income in the Less Common Income section at the bottom of Wages & Income.  

If this is a "second home", property taxes and mortgage interest may be included as Itemized Deductions (Your Home under Deductions & Credits).  

If the rental income exceeded the property taxes and mortgage interest for the property, you may deduct additional costs associated with the house as miscellaneous itemized deductions (Other Deductible Expenses under Other Deductions & Credits). The total of property taxes, mortgage interest, and other expenses that you deduct cannot exceed the amount of rental income you received.

[S51]

Can anyone confirm if this statement is still true? 

If your expenses (mortgage interest plus property taxes) were more than the rent you received, you are not required to report the income.

We had a family member renting from us at below fair market rental value and are trying to understand the impact as it relates to not for profit/other income reporting.

- Mortgage interest + property taxes = $24,896.32 for full year ($18,672.24 prorated for 9 months)

- below fair market rental value income of $18,000 across 9 months in 2025. 

Do we need to report the $18,000 as other income? If so, where does that get reported? 

[AnnetteB6]

Yes, the income must be reported on your return.  If the property is rented below market value, then use the following steps to report the income:

• Go to the Income section of your return
• Scroll to the Less Common Income category
• Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C
• Scroll to the bottom of that section and click Start or Update beside Other reportable income
• Answer Yes
• Enter your description (such as below market rental income) and amount for the income you received

If the property qualifies as a second home for you, then you can claim the mortgage interest on Schedule A.  You can also claim the property taxes as an itemized deduction on Schedule A.  

To learn more, take a look at IRS Publication 527.

@S51