benectar

I jointly own a property + mortgage with my parents and I am currently writing off the mortgage + interest in my 1040 because I am at a higher tax bracket.

I am considering purchasing a 3rd home. Is it more advantageous to

1) convert my 2nd home into rental property
or
2) let my parents pay for the expense and claim that on their 1040.

I am leaning towards the latter because if they sell it later at a gain, they don't have to report capital gain whereas for 1), I do.

Is that logic correct?

Thank you in advance.