Investing with partner - Tax advantages

[Grant Baker]

Hello all, I have never invested with a partner before but looking at possibly doing it in the near future. I have lots of questions on how it would work, we agreed we would go 50/50 split all expenses. If we invest in a 2-4 unit property I would live in one unit and we would rent out the other units. We are both hoping to reduce our taxes this year as we paid a lot in taxes last year. How would this work with writing off depreciation for both of our taxes? Any other advice you may have for investing with partners I would love to hear!

[Basit Siddiqi]

Do not do this setup

If you decide to move forward, do not live in the property. make it 100% an investment without any additional complexities. KISS(Keep it Simple..)

Reasons
1) What are you getting in return for living in the property? Do you have to manage the 3 other properties? What if you decide to stop managing the property in the future?
2) Are you expected to pay a rent? What is to say that your share of rent won't increase or that your partner won't want it to increase?
3) There may be personal use of the property which would mean that you or your partner may not get tax benefits for the share of the unit where you are living in.

For a successful partnership, the total partnership should have Experience, Money, Time.

What skill set are you bringing and what is your partner bringing?