Rental Properties ?

[sundrop]

When I married I moved into my wifes house. I am renting my house to a friend for less than the mortgage and taxes so I lose money every month but it lets me control who lives on the property beside my Parents.
What I need to know is this,

Should I show the rent as income and is there an advantage to the financial loss if I do??

I think with the variety of people we have here someone can give me some advice....