If I rent a house to someone for less than I could get from someone else can I deduct the difference

Sue Member Newcomer
edited November 2023 in Filing my taxes

I am taking a loss of income so I’m wondering if I can claim it as a loss.

Best Answer

  • KristineS
    KristineS FreeTaxUSA Agent
    edited November 2023 Answer ✓

    Another thing to consider is, and depending on additional facts and circumtances, if you are renting a house to someone for less than what the IRS considers 'fair rental value,' ie not-for-profit, you may not be able to claim your rental income and/or losses on Schedule E. Instead it becomes 'other income' reported on Schedule 1, Form 1040.

    Check out IRS Publication 527, on the page with Not Rented for Profit (currently page 16 as of this post).