Living in Primary Residence and renting out rooms (taxes)?

[Justin Littke]

I just bought a new house and I will be living in it renting out rooms to roommates.

The mortgage payments will be $550/month. 

Utilities will likely be $400-500/month.

I plan on renting out 2 rooms at $450/month each.

(1) As I understand it, I will not be taxed on this rental income because I am getting no profit from it as it is just accommodating the utility and mortgage expenses...is this correct? ($950 in rentalincome, $950-$1000 in expenses)

(2) Can I also deduct any furnishings I buy for the house as well as any items I buy for repairs? (i.e. Comforter sets, beds, silverware, washer & dryer/ screwdriver, saws, air filters, etc.)

(3) Can I deduct any home improvement made? (getting a contractor to put up drywall etc.)

(4) Assuming I can deduct all these things as well as mortgage interest and taxes will these deductions roll over into the taxes I pay on my job income?

(5) This will still technically be classified as a Primary Residence since I am living in it correct?

Any other advice?

Thank you for any help, I know these are amateur questions but just getting started and want to make sure! If anyone would be kind enough to help me and offer continued help with any further questions that may pop up in the future I would greatly appreciate it!