Need help analyzing partnership change

[Danielle D.]

Hello all,

I have a couple of questions regarding the analysis in a percentage change of ownership and I'm hoping to get some insights from the group.

I own a commercial, free standing building with a partner. We're 50/50 on the land and building, and she runs the occupying business (we used to own the business together and she bought me out).

The original loan was $1.95m and is now down to $1.84m. I am considering putting in an additional $400k and refinancing to a lower rate. The building has excellent cash flow and a 10 year lease. Here are my questions:

1. How would I calculate my share of the profits post-$400k investment? I've tried both $400/$1.95m and $400k/$1.84m and added those percentages to my original 50% share but that leaves my partner with LESS profit than she would've taken under the old financing structure, so that doesn't seem right. What am I missing?

2. Can we retain our 50/50 "voting/ownership" interests and have the K1s reflect that I would take a larger share of the profits? Not sure of the IRS rules around this.

I know this is more complicated than what I can put in this email, so feel free to ask any questions.

Thanks!
Danielle