Tax strategies as rental vs.holding title w/ disabled adult child

[Jocelyn Canfield]

This past spring I purchased a home that my disabled son is now living in. Because things came up very quickly, I took title in my name only, which means that I have to pay tax on the rent he is paying. Given that I spent about 20K on repairs this past year, deducting those expenses is clearly an advantage. But I really want him to be a co-owner, probably has to be tenants in common (based on my understanding that joint tenants has to happen at time of purchase and is equal shares) with him owning like 1%, which then I don't have to report his rent as income. He would be a co-owner and paying his share of cost. I know I would have to recapture depreciation for the year I owned it and it technically was a rental, but I think once I take the expenses as losses, I don't have to recover any of that do I?

My other concern is that he is on Medicare/Medicaid and it is my understanding that they can come after any of his assets if anything happens to him to repay for his medical. Keeping him as small percentage owner reflects that I purchased the house with my money and am the primary owner, but some of his resources are definitely being used so he is co owner.

What am I missing or not understanding? Is there a better way to do this? Really appreciate professional insight here.