Buying Rental Property with Parent - What is Best Option?

[Sahil Raina]

Hello All,

I am looking to buy a rental property with my parent (full cash no loan) and we are trying to figure out how we should set up the agreement in order to get the least amount of taxes paid and most amount of profit made. It is not going to be our main residence and it will be a rental property for a few years before we sell it. We are not sure the split of equity yet, but lets assume 50/50 for now. Is it best to do a joint tenancy, an LLC, or some other structure? What would best help limit the taxes paid between us on the sale of the home if we are able to make substantial profit?