Tax Prep Handling on Partnership Properties

[Victor Alfonso]

Hey Y'all - Long time BP lurker, minimal poster. I purchased a couple of SFR properties in Metro Atlanta in 2022 with a partner and had a couple questions regarding the tax preparation for them. In the first scenario, title is in my name personally and I have the debt in my name as well. The outside agreement with my business partner is that we own the property 50/50, including the gain/loss, depreciation etc. In the second scenario, title is in a revocable land trust in which I am the trustee, with the debt in my name, and the same business partner and I are the 50/50 beneficiaries of that land trust. We were hoping to treat the land trust as a disregarded entity and not file a return for it since it only owns that one single family rental.

My CPA firm suggested I reach out to a real estate tax attorney on how to handle the tax preparation of each of these two scenarios. For those that have dealt with these scenarios, do you have any suggestions?  Do you think I need to retain a tax attorney, and if so is there anyone you can recommend?  Neither are high value properties so I'm not looking to pay an arm and a leg here, but I am willing to retain someone if I need to.

Thank you.