House Hacking with a Business Partner

[Will Addison]

I live in Maryland, but just purchased a 4-bedroom home with a friend who lives in Little Rock, AR. We each put 10% down, he pays rent for his room, and are renting out the other three bedrooms. Since it is my business partner's primary residence in Little Rock, we got breaks on the mortgage and on insurance, but does this preclude me from taking advantage of tax breaks of owning an investment property (ie. depreciation, expenses, ect)? When we file taxes, can he claim it as his primary home, while I claim it as a rental property? We eventually want to put the house in a LLC, but went ahead and purchased it in our names due to getting a low-ball offer accepted. We cashflow well, but I would like to take advantage of the tax incentives as well. If it matters, I am military and my home of record is still Arkansas.

Please advise and thank you for the help.