Posted by Bill Bronchick on April 21, 2010 at 18:48:52:
If you are partners, regardless of who’s on the mortgage or how it is titled, your partnership agreement spells it out. Assuming you are 50/50 by default you’d split profits and losses accordingly through a K-1. You can do special allocation of profits, but that requires a well-drafted partnership agreement.
real estate partner not on mortgage - Posted by tom blackburn
Posted by tom blackburn on April 14, 2010 at 18:57:45:
My sister-in-law went in 50/50 on a house (rental) and my name in only on the mortgage debt and title. We have a signed agreement between us regarding our joint partnership.
Can she take any tax deductions on the property (mortgage interest, depreciation, etc)as is??
If I want to give her my portion of interest (quit claim deed)can I do a wrap around mortgage with her and if so, how does the tax deduction work - she pays me interest (she deducts this) and I receive the interest and pay the original mortgage - say a dollar for dollar so I have no gain or loss.
Do I claim interest as income and mortgage interest as deduction? Does the deed have to be recorded? Is the contract of sale considered a secured loan?