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My daughter receives Social Security disability income and pays me rent. Can I declare this income as not-for-profit rental income?
Yes. If you don’t rent your property to make a profit, report the income on Form 1040, line 21.
If you itemize deductions, you can deduct these on your Schedule A:
You can deduct other rental expenses up to the amount of your rental income. You can’t deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year. You can deduct these as miscellaneous itemized deductions. You can do this if both of these total more than 2% of your adjusted gross income (AGI):
You’re renting your property for profit if both of these are true:
If you rent the property for profit, report the rental income and expenses on Schedule E, rather than on Schedule A.