Taxes and how to structure a "Partnership"
Hey All,
I have two different questions but they are ultimately linked. I'm super confused at this point on the tax advantages of buy and hold RE. I have been talking with my aunt who is a CPA here in the Houston, Texas area and frankly that is what is getting me confused. What I have been hearing from CPA people around BP and on the podcasts don't seem to line up with what she is telling me. Could someone please explain it a bit clearer for me or point me in the direction of some resources that would.
As well I am in the process of forming a "partnership" with my father in law to buy rental properties. He is going to be the money partner and I will be doing the sweat equity/operations. If it matters he is located in Colorado, and I am in Texas. I'm not necessarily worried about the liability protection from an LLC at this point, but I do want to figure out the best possible way to set up our "partnership" or whatever legal form it takes to benefit us both the best. Once again can someone point me in the right direction please.
Disclaimer: Yes I am working on finding a good RE lawyer to discuss these topics with as well and get their official legal opinion. I also understand the dangers of doing business with family. It is a calculated risk I am willing to take.
Thanks for all the input!
Daniel