No. None of this appears to be Arms Length transactions. You would need to establish whether you are a tenant or just paying your half of the mortgage. If you are still paying your half of the mortgage since you refinanced but you are still half owner, you and your brother can decide how you want to treat the mortgage interest deduction.
Based on what you described in your question, I don't understand where the "gift" is incurred. You would not be able to use the "gift" or "rent" on your Schedule C with your 1099MISC because you are not in the business of renting properties. If you had a legitimate rental property that would be on Schedule E Rental Income and Expenses. But, I think you are trying to deduct the rent on your schedule C that you pay to your brother to live in the house you are 50% owner. You cannot deduct rent. It is a personal expense and is not deductible.
No, there are no circumstances where you can deduct rent payments on your tax return. Rent is the amount of money you pay for the use of property that is not your own. Deducting rent on taxes is not permitted by the IRS.
Maintenance on your home is not deductible. It is not considered rental property but a residence for you and your brother.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
