If you rent a room in your house to a friend do you have to claim the money on taxes?

ANSWER

The BIDaWIZ Team's Answer:

Yes; unfortunately, this is taxable rental income, that must be reported

on Schedule E, of your Form 1040. However, you can also deduct

all repairs, utilities, taxes, and all other rental expenses, etc. that accrue

from the room rental, to reduce your tax liability, and you can depreciate

the fraction of the home that constitutes the room rental; if you so elect; to 

further reduce your tax liability, in this regard.