MY RENTAL I ONLY CHARGE ENOUGH RENT TO COVER INS AND TAXES? DO I HAVE TO REPORT THIS ON INCOME TAX SINCE NO INCOME FROM THIS PROPERTY, CHILDREN LIVES HERE?

[DanaB · Accepted solution]

Yes, the rent collected still will have to be included in your tax return.

If you decide that you are not renting for profit because you rent the property below the FMV to your children, you have to enter the rental income under Other Reportable Income.

1.      Click on the Search box on the top and type “Other reportable income”.   

2.      Click on “Jump to Other reportable income”

3.      Answer “Yes” to “Did you receive any other taxable income?”

4.      Enter Description and Amount.

The expenses for property tax and mortgage interest can only be deducted on itemized deductions (Schedule A).