Say I am renting an apartment for ~$1000 a month and I have a friend that needs a place to say. I let him stay on my couch and he pays me ~$999 a month. So I'm at a loss of $1 each month.
Do I need to report this as income?
He has stayed for more than 14 days (closer to 90), so from my understanding it's not a Tax Free rental. It's also my personal residence, and I'm operating at a net loss because my expense are higher than the revenue it's generating.
Is it considered taxable income because I would be living in the apartment regardless of him needing a place to stay? I'm a bit unclear on how it works if there is not a lease in place. He's just giving me some money each month. And I'm also technically losing money, but I don't want to owe a bunch in taxes later because of a mistake.
