Renting below fair market value
I own an apartment (100% ownership) and am renting it out at about 40% of fair market rent for 365 days/year. According to IRS Pub 527, this is apparently considered "personal use" since it is below FMR value - however, I do not personally use the apartment and I am receiving monthly payments from the tenant - the total payments from the tenant are less than the sum of depreciation and maintenance expenses for the apartment (so a loss). Is this still considered a rental or not? Can I deduct depreciation expense for this rental? If this is indeed considered "personal use", then do I have to report the monthly payments at all, since technically I rent for less than 14 days a year.
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