Investing with your spouse: How to structure?

1 Reply

My wife and I are on the road to purchasing our first investment property (buy and hold). The plan has been for us to jointly purchase the property in our own names and then DBA as "Surname Properties" or similar.

How do you handle investing with your spouse? Do you form a formal partnership? Do you make a  sole proprietorship and do a joint venture for federal taxes? I know that structure in general is a question for a CPA or attorney, but this is a step that I feel many investors must have already gone through.

Thanks for responding!

@Matthew Brenner  My husband and I have always pooled our money for living, we do the same in investing--50/50 ownership.  Our first 3 properties have been purchased in our names.  The percentage questions are there, when one fills out papers for the tax man; so far, it is 50/50.  BUT, I work for a group of investors who own lots of property.  They randomly buy in one name or the other, depending on the deal and the financing.  Some are partnerships with other people than their spouse.  As the empire expands, a variety of financial structures get the deal.  

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you