1) Normally no since you don't own or occupy the property. two key rules for being able to deduct expenses related to it. however, the law does allow an equitable owner to take those deductions. An equitable owner is a person who has the economic benefits (usually occupancy) and burdens (maintaining the property and paying its expenses) of ownership based on the facts,
In one case where a taxpayer had neither title nor name on the mortgage the Tax Court determined the taxpayer was the equitable owner because he occupied the property, paid the mortgage, taxes, insurance and other bills associated with the property; mainy=tained the property and made improvements to it.
since EO is determined based on the facts and each situation is different you may want to consult with a tax pro in your area. however, I think the lack of occupancy makes it difficult to find that you are an EO
2) Is there a way I can help with property taxes and claim benefits without my name being on the deed?
(or at least let him claim the deduction with my payment as a gift? rather than you pay directly. make a gift to him to pay the bill and see to it that he pays it.
3) If we don't plan on ever selling the home, does it make sense to just add my name to the deed now? (Goodbye first-time homeowner benefits down the road) there no longer is any special benefit to being a first-time home buyer except possibly at the state level but tax laws do change. generally, it is unwise for your name to be on the title. you would own 1/2. it is likely your father will predecease you. you get a stepped-up basis for the 1/2 he owned equal to the FMV on the date of his death. there will be no step-up for the 1/2 you own so your basis is 1/2 of his cost basis. it is likely you would sell the property. you would not be entitled to the home sale exclusion since you would likely not occupy the property for 2 years in the 5 years before the sale. Ownership for 2 out of 5 years before sale is also required. Thus depending on the gain, if any, you would owe capital gains tax on the sale.
