Mom and daughter own a home property together as joint tenants. Mom and deceased husband used this home as personal residence, and then after dad died, mom added daughter to the title and they started renting it out.
All the rental income is sent directly to daughter (and her SSN) from the property manager, and daughter places income in a joint bank account. All expenses related to house are then paid from this joint bank account, except for the mortgage, which is still just in mom's name and mom pays herself.
All the net income from the property goes to pay for mom's living expenses in an assisted living home. Daughter does not get any proceeds from this. This house will be inherited by daughter after mom dies.
How do I handle this on the tax return? My initial thought is that mom claims all the income and expenses, as it doesn't need to be a proportionate split. But what about depreciation? Do I only depreciated only 1/2 of the house? I know there will be a step up once mom passes away. Mom already filed her tax return without anything related to the house at all, so trying to make this "easy" and right.
Thanks.