My partner and I (non-married) co-own a home and rent a portion of it. How do we divide the mortgage interest and property taxes among rental and personal deductions?

[alex-mcin10]

We bought the home in 2017 and immediately started renting 50% of it. 

We are trying to figure out how to allocate expenses and deductions. Do we each 25% of the mortgage interest and taxes as a rental expense, for a total of 50% of the mortgage interest as a rental expense? (25% because we each pay half of the mortgage and we are renting only 50% of the home.)

And allocate the other 50% of the mortgage interest and taxes towards our mortgage interest deduction?

[MelaineC · Accepted solution]

Yes, based on the information given.  Let's use numerical representation;

Example;

-  Mortgage interest for entire (100% of home) is $2,200

-  Rented half $1,100 - Lived in half $1,100

-  On Schedule A, when you itemize; one person claims $550 the other $550

-  On Schedule E for rental; One claims $550 then other claims $550

-  Regarding expenses for the rental;

-  If total expenses is $700 each will put $350 on their schedule E.  You will each record a half of the rental expenses.