Taxes and Partnership

[Keino Chichester]

Hi All, 

I'm considering reaching out to family and friends with some analyzed deals for a potential partnership investment. 

There is one thing I cannot wrap my head around: If a person(s) involved in the deal is not on the loan, can they still deduct their portion of the loan interest and depreciation of the property? I suspect my potential partners would want to be active. 

Purchasing the property out of an LLC would probably solve this problem but I would like the first Joint venture to be "simple" to avoid intimidating anyone.

Any advice is welcomed

Thanks,

Keino