Saving money on taxes
I bought my first home in April of this year (2020). It is a single family home and I am currently house hacking by renting out the 3 other rooms to some friends of mine. The home is my primary residence. My mortgage is $1,150/month and I bring in $1200/month in rent.
My dilemma:
1. Do I report my rent as income and pay taxes at the end of the year?
2. Do I not report my rent income and save money on taxes?
3. Do I open an LLC and consider my home a business and write off my expenses and payment and report my income which will all come out to look like I took a loss over the year? Is this even an option?