Taxation for Partnerhsip Where Only One Person is on the Loan?

[Daniel Dietz]

Hello all, 

So far I have only done buy-n-hold rentals in LLC partnerships that were taxed as pass-through entities and I received K1 for my part of things.

A new partner and I are planning on doing a few deals that are NOT LLCs in order take advantage of the longer terms and better rates o f conventional financing. One of use would be bringing the down payments and one would do all of the acquisitions, managing etc.... We are also considering only ONE of us being on the loans, but both of us being on the title to make the best use of our the limits on the number of loans available using conventional financing. 

What we are unclear of is how taxes, depreciation and the like would work in this situation? We would like to be able to split both the yearly 'cash flow' and the long term capital gains '50-50'. Is this possible? Would we need to have a partnership agreement of JV agreement for this?

@Steven Hamilton II or others, whats your thoughts?

Thanks, Dan Dietz