Can/should one spouse claim rental income/expense if a property is jointly owned (Married Filing Separate)?

My spouse and I own a rental property jointly (survivorship deed). The mortgage is only in my spouse's name. The tax bill reflect's my spouse's name. My spouse is the sole landlord on the lease; rent is paid into our joint checking account, but all of it is used to pay the mortgage and expenses each month (no profit). Can/should we file the full rent/expenses (Schedule E) on my spouse's 1040 or do we have to split them?
  • Do you live in a Community Property State?  Why are you filing separately?
  • We do not live in a community property state. MFS is best for our overall financial situation taking all factors into consideration. It doesn't make a difference to us tax-wise if one or both of us file the Schedule E. There is no profit and we cannot claim the loss; we're just not sure if we can claim 50/50 since I am not on the mortgage and alternately we're not sure if my spouse can claim 100% since I am on the deed.
    Contribute an answer

    People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

    1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
    2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
    3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
    4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
    5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.