We rent our second home out to my mother in Florida. We only get $100 a month. Do I need to add this for a rental property?

[DS30 · Accepted solution]

No.

In your situation, where you are renting the home to a related party for less than FMV, this will be considered personal use of the dwelling for the period when it was rented for less than FMV.

However, unless you consider this $100/month amount as a gift from your mother (the annual gift exclusion amount allows anyone to gift another person up to $14,000 in a single year tax-free), you will need to recognize this income as other income on your tax return (even though you will not be able to claim any rental expenses against this income.)

To enter this as other income under other miscellaneous income in TurboTax Online and Desktop  (for TurboTax Online sign-in, click Here:(

1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages and Income”
3. Next click on "jump to full list" or “I’ll choose what I work on” (or see more income)
4. Scroll down the screen until to come to the section “Less Common Income”
5. Choose "show more", then Miscellaneous Income
6. Choose "Other Reportable Income" and enter this information here under other taxable income (screenshot)