@DN76 --
You & your partner should each do this:
When you enter the 1098 into TurboTax, you'll come to a page that asks you to check a box if your name isn't on the 1098, or if it's listed second. Check the box if it applies to you.
Enter the "outstanding mortgage principal" exactly as it's shown in Box 2 of the 1098.
Enter 50% of the interest (and property taxes, if they're shown on the 1098).
As you proceed through the questions, you'll come to a page titled "Explain the difference".
On that page, write a brief note stating that you're a 50% co-owner of the property, so you're only deducting 50% of the mortgage interest and property tax. Include your co-owner's name and SSN in the note.
That's all there is to it.
My answer assumes that you're equal co-owners and that you each pay half the mortgage & property tax.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
