Taxes on Joint Owners' Rental Income

[Debbie C.]

My husband and I co-own an investment property with our daughter which we are now renting out to tenants. My husband and I have also mortgage on this property. Our daughter’s name is not on the mortgage even though she’s a co-owner. We are letting our daughter take all of the rental income for herself since she is the one who is managing the property and paying for repairs/maintenance and property tax. Plus she needs to improve her debt to income ratio, so we'd thought this would be helpful for her. How should we report this on our taxes? I read somewhere that co-owners usually to split the rental income based on percentage of ownership when reporting income to the IRS. But is it possible to let her have the majority of the rental income, and leave just enough remaining for ourselves to deduct mortgage insurance?

Thanks in advance for any advice!