I own a 2nd home in NC, currently occupied by my father. He pays well below market value ($300 paid, ~$700 market) because of limited means. Because the house is not rented at full value, I've continued to treat it as a 2nd home for tax purposes (no depreciation). Do I need to count his $300/mo as rental income? It's unclear to me because (1) he's family and the $300/mo falls well below the $10,000/yr "gift" minimum and (2) this is not activity for profit - it's just to help allay the heavy subsidy I'm providing to him. Thanks for your help.