Partnership in California and Florida Structure and Tax Deduction

[Mark Nguyen]

Hi,

My partner in California will be funding a single family up to a fourplex. I am in Orlando, Fl, will be finding, analyzing, negotiating and managing the property in Orlando.

I will be living in one room/unit and renting out the others.

We are looking to acquire an investment property by the end of 2023 using creative financing or maybe with a conventional loan.

She is looking to reduce her income tax by about 200k. Can any fees/costs (inspection, rehab/repair, closing, reserves…) associated with the property be deducted from her income tax? What amount of expenses would reach the tax deduction amount of 200K?

Any suggestions on how we should set up our partnership with the tax benefits are welcome.

Thanks in advance,