We rented our house to our daughter from August through the end of the year. taking a 153.00 negative cash flow

[LinaJ2018 · Accepted solution]

If you charged her at the fair rental rate and your home is her main home, it is considered as a rental transaction for business.  You are required to report the rental income and allowed to deduct related rental expenses on Schedule E.

If you charged her a rent under the fair rental price, it is not considered as a rental business. Therefore, you do not need to report any rental income and no rental expenses for deductions is allowed.  However, you do need to report the income as other income online 21 of your Form 1040.  IRS considers this as hobby and any related expenses up to the rental income may be deducted on Schedule A subject to 2% of your Adjusted Gross Income AGI. 

[Edited 3/22/2017]

[LinaJ2018]

Please see updated answer above.