Is rental income received from a handicapped family member who lives and receives care in a parents home taxable to the parents?

[hackrental]

Is rental income taxable when the renter is a family member living in the same house?

[TomK · Accepted solution]

Yes, it is considered rental income (reported on Schedule E - Supplemental Income and Loss).

To enter income and expenses from a rental property: https://ttlc.intuit.com/replies/3288530

If you rent your property below fair market value, the IRS considers that you do not rent your property to make a profit. In this case, you can deduct your rental expenses only up to the amount of your rental income. You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year.

Mortgage interest and property taxes paid are claimed in Schedule A as for your residence.

For more information - IRS Pub. 527 - Residential Rental Property: https://www.irs.gov/pub/irs-pdf/p527.pdf