without allocating you would be misfiling and that can result in your taxes being higher than necessary. not only should 1/2 the interest and taxes show up as rental expenses on schedule E along with the rental income, but you must take depreciation on 1/2 the cost of the duplex after subtracting out the land value. failure to take depreciation will create a substantial problem if you sell the duplex. the taxable gain would have to be figured as if you did.
special rules apply if your renting at less than fair market value