Splitting Tax benefits in a Partnership Agreement

[Paxton R Nicholas]

I am looking to close a 4 unit property very soon with a close family friend. We know the risks in getting involved with family/friends but we don't care right now. That said, we want to be smart and get everything down in writing so we are in the process of drawing up a partnership agreement. Here are the foundations of the partnership:

• Loan is in my name
• Deed is in my name
• I have agreed to do all property management work
• Initial cash investment (DP + Closing costs) are being split 60% me / 40% him
• NET will be split 60/40
• He will be paying me 6% of all rent income each month. Property management expense will not be included in calculating NET.

My question is How does this work for our taxes? If there are benefits how can we split those up?