Forming a Partnership To Improve a Property I Already Own

[Wayne V.]

I'm looking for advice on how we should structure a partnership on a property that I already own. It's a mixed use building, 8,000 SF with a 2 bedroom, 1-1/2 bath apartment. I've owned it for a number of years and have used it as a shop / artist space, secondary residence, but not as a primary residence for a number of years as it's located about five hours from where I presently live. My son and I would like to finish it out a bit, preparing it for sale sometime in the next year or two. During that process, he and his family would be living in the apartment. The plan is to cash out with each of us using our proportionate share of the after repair proceeds for our next individual investments. What is the best way to structure this so that there will be a fair and equitable distribution, considering that from this point on we would both be investing in the property, although I am the sole owner and that from this point on, he would be doing most of the work with periodic help from me on the major renovation projects? We also need advice on how we can both have the tax advantages of a real estate investment of this sort. At present, I write it off through my contracting LLC.

Thanks for any advice you may have to offer,

Wayne