I have a 2nd home that my adult son and his friends live in. I collect enough money to pay the mortgage and utilities but make no profit. Still considered a "rental?"

[Coleen3 · Accepted solution]

Not per se. The income would not be entered on Schedule E. It is considered a not-for-profit rental. The income would be entered on Line 21 1040 as other income. You can deduct expenses up to the amount of income on Schedule A under miscellaneous deductions subject to 2% of AGI floor, if you itemize.

To report income:

• 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 .)
• 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 and income

To report expenses:

• Go to the Federal Taxes 
• Deductions and Credits
• Click “I’ll choose what I work on” 
• Click Other Deductible Expenses Start.
• At the “Less Common Expenses” screen, say yes.