you don't report the basis of the property anywhere, but keep track of it because when it's sold there may be a need to report it. You are allowed to deduct your share of property taxes and interest that is paid. points on the mortgage would have to be amortized over the life of the mortgage. The deductions would go on schedule A and to be of tax benefit, the total itemized deductions would have to exceed your standard deduction.
Taxes are limited to $10,000 on schedule A.
Thank you for your response. I previously owned 2 houses which are not rental properties. Since this is 1/2 ownership of a third non rental home, am I allowed to seek 1/2 credit for property taxes on this house as well?
Yes, if you paid the taxes. If you itemize your deductions, you can deduct the property taxes you pay on your main residence and any other real estate you own. The total amount of deductible state and local income taxes, including property taxes, is limited to $10,000 per year.