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Tax Deductions on Joint Tenancy Rental-- Title vs. Mortgage
Rentals that are in my name only, Schedule E deductions are pretty straight forward. Here is a more unclear scenario in a family partnership:
Rental property investment loan purchased with the mortgage in fathers name. After closing, myself and brother (his children) are quitclaimed and added as joint tenants (lender is fine with this). In that case, we are equal 1/3 owners of the property, but only 1 is the mortgage guarantor.
I assume the rental income is split 1/3rd on Schedule E taxes. Can the expenses (including interest,taxes) be split equally 1/3rd as well? Or does something different need to be done since only 1 person is on the mortgage?
Bonus points-- What if it's quitclaimed to an LLC we set up instead of personal names? The LLC would still operate as 1/3rd ownership each. The mortgage is also still in father's name. Does that change the taxation and deductions any different than the above scenario, in our own names?