daughter pays mortgage on 2nd home, file schedule E

[kristinacyr]

2nd House for my daughter. This is not not rental income, my daughter pays the mortgage and everything else. I did not file schedule E. My loan officer says I have to but IRS says I don't have to file

[VolvoGirl]

Maybe this similar post will help

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-my-son-lives-in-my...  post will help

[NCperson]

Who owns the house and is your daughter paying below rent that is below market? If she is paying the mortgage on your behalf and number is below market value, the discussion at @VolvoGirl's link is the same thing. 

Assuming that you own the property and your daughter is your tenant paying below market rents

1) the rent (which in this case is the mortgage payments she is making on your behalf) is INCOME to you. It does NOT get reported on Sch E, but rather is a "other" income item that can be reported on Line 1z of Form 1040.   

Schedule E is for rental real-estate, but in this case all you have is personal use property.  It would not be technically "rental real estate" because it is not rented at fair market value.

2) since she is paying below market rent and is a family member all the days she rents are considered "personal use days".  That means that none of the expenses of maintaining the home are tax deductible.  You can, however, deduct the mortgage and property taxes on Sch A, if you itemize.   

The 'personal use days' designation has no impact on whether the rent is reportable as income; it is reportable. 

[AmeliesUncle]

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@kristinacyr wrote:
my daughter pays the mortgage and everything else. 

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Maybe you could give us some more information about the situation with the house and your daughter.

If she is paying for everything, what is the situation that it is your house, rather than she owes the house?

For example:

1. One scenario could be that she couldn't qualify for a mortgage, so she asked you to buy it.  She paid for the down payment and the entire time she has paid for everything, and when the house eventually sells she will get all of the proceeds.  In other words, although the title is in your name, for all functions it is her house.
2. Another scenario could be that you owned the house for a while and either used it personally or rented it out.  Then at some, she asked if she could stay there a while and you said "okay, as long as you pay the bills".  But then at some point she will move out and you will start using it again for yourself or rent it out again.
3. Or your scenario could be something else.

In my opinion, we first need to find out that before we can tell you how to proceed (personally, I would treat the two scenarios above differently).