@Sarah515 wrote:
@guywong All of that applies, except for the down payment. My dad paid 50% of the down payment, and he co-signed, he does not do anything else with it, and does not want to claim any of it on his return. I manage the rental, collect rent, pay the HOA, do maintenance and repairs. But I absolutely consider him 50% owner as I said in the original post. If only one of us is claiming anything having to do with the rental, do you think that still maintains the spirit and intent of the tax law?
If your father paid 50% down, you will have a very hard time proving (if audited) that you are entitled to 100% of the depreciation.
If you are the only person paying for maintenance, utilities, repairs, and the mortgage, then over time, your ownership percentage will gradually increase. You might want to have a partnership agreement in writing that spells out the percentage of ownership and each owner's responsibilities, that would allow you to claim an increasing share of the rental over time.
But as things stand, I think you are at risk of over-claiming depreciation, and your father is at risk. for underreporting the rental income. You may want to discuss this with a local tax professional.
