I rent a home I own to my son for less than market value, so there is no profit. I reported the income under the rental income section and TurboTax shows the verbage "Not for profit rental income on the 1040A form, line 21 which is correct but it shows $0. It has also prepared schedule E which I know is not correct. My interest and taxes alone are far greater than the rent I receive so it results in a loss.
You'll want to delete the Schedule E first:
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. Form 1040, line 21 could not be less than $0 in this case.
You'll want to delete the Schedule E first:
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. Form 1040, line 21 could not be less than $0 in this case.