Partner without LLC. How to Split Income/Expense for Tax?

[Miko Lee]

Hello all, I recently closed a small multi-family deal. I have some tax questions. Supposedly there are 3 of us (Investor A, B, and myself), all three investors are on the title. But, the loan only has me and investor A. All three of us contributed to the capital and will split income/expense by partnership interest. We did not actually form a LLC because we want to take advantage of the conventional loan. My partners are my family. What are the tax consequences? Say if we have $1000 positive cash flow, and I have 10% interest, do I just file 10% of the $1000 as income, and deduct 10% of every single expense when it comes to filing my own tax?