Sched E return - 'partnership'

[Tim M.]

Earlier this year I purchased a MFH. Because I already have an investment prop that is unseasoned my DTI was slightly over the requirements. For the 2nd purchase I convinced my father to let me "borrow" his excellent DTI, by obtaining the loan together. I had the finances for downpayment etc, just not the DTI ratio required. (I will refi it as soon as the other prop become seasoned). He's fine with it and has no interest in equity/ tax advantages/ payments, just doing me a favor by partnering on the mortgage, but wants me to refi into my name alone within 1 yr - no problem. My question is regarding Sched E and tax returns. Technically we are 50/50 partners, both on mortgage and title - do we HAVE to both file Sched E returns? Or is he able to allow me to claim 100% of this property? Anyone know what IRS position is on this? I first thought, whats the difference as long as someone claims 100%. But because he's in a higher tax bracket, perhaps the IRS wants to see his 50% (net income) taxed at his higher rate? Also, would it have made a difference if he wasn't on the deed?