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Updated almost 8 years ago,
paying rent to partnership when only 1 partner is occupying prop
I am about to close on a 3plex with a business partner. I will live in one of the 3 units and manage the property, but my partner will not be living in or managing the property. My plan was to pay rent to the partnership at a reduced rate in return for handling the management responsibilities. However, on other similar posts on this site, I have read that I should not pay rent to the partnership and I will only be able to deduct depreciation and expenses for 2/3 of the property. Living rent free is great for me personally, but it is not really fair for my partner. How do we work this out?
Thanks!