Reporting rent income

[Antonio Esquivel]

Hey everyone,

I just recently purchased my first house and I will close in about a month. The house is a 4bed 2 1/2 bath. Me and 3 other friends will be moving into the house.

Now my questions is, the rent that my friends will pay will be $1050 a month combined, $350 each. And that will include rent, all utilities, tv, and internet. As far as my expenses, it will be at around $1000 a month. So I will live for free.

When I report this to the irs, I'm assuming I will no longer get a tax return because of this income and instead I would owe money each year. Is there anyway where I can deduct all of my expenses if I set it up as a business? It seems unfair to pay more taxes when I really don't make anymore disposable income. I apologize if these things might seem like no brainier kind of stuff but I'm not too familiar with tax rules.