Partnership/Tax Question - Needs to show a loss

[Greg Junge]

I'm trying to figure out the following scenario but need your help.  A relative of mine wants to invest 100k in real estate, only if it will show as a loss on his taxes.  He's not a real estate investor but has cash to invest.  He doesn't want to be on the loan, which I'm fine being on the loan solo.

My question is, how do I know or calculate if a property will produce a loss on his taxes based on him just putting in money, not being on the loan, and being a 50-50 partner.  Do I just calculate income - expenses - depreciation? Or am I missing something?

I have rental properties myself but never had a partner, and never one with this request to show a loss specifically.  I always buy for cash flow, not appreciation, but do I have to change my thinking for this scenario?

Any advice would be appreciated, tax or otherwise.

Thanks,
Greg Junge