Dexter Dicostanzo: When you don't treat as a rental, it's considered "not for profit" and the rules are different. You declare the income on line 21 of the 1040 and the expenses (only up to the amount of income) on schedule A.See IRS publication 527.
An Cardine: when you rent to family members, you still report the income as rent on Sch E but if you rent below market value to family members, you are not allowed to claim the expenses
Dick Ovdenk: You need a rental agreement of some kind. You really should be collecting enough to cover your mortgage, insurance, and taxes. "Pay what you can" is unreliable and does not protect you against loss.If your inlaws are unreliable, do not rent to them. Find a realtor or real estate rental company to handle the screening of rental applicants and dealing with the issues involved with rentals. You will pay a fee, but that is deductible on the Schedule E along with many other expenses involved in renting.With your life i! n a turmoil with the military, you really don't need to worry about whether you will lose your house while you are gone or whether you will have the resources to pay the mortgage, insurance, and taxes on it AS WELL AS the costs of living at your TDS.Best wishes...Show more
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