Depreciation is typically allocated according to the ownership percentages outlined in the partnership or syndication agreement, which are set in advance and follow certain rules under the tax code.However, some syndication structures can be designed with different classes of partners or special allocations, but these arrangements are subject to complex tax rules, such as the "substantial economic effect" rule under Section 704(b) of the Internal Revenue Code.

@Chancy VinesTry Sutton Law https://sutlaw.com/ They are a good resource in Reno. 

Keep practicing that deal analysis, and as you build your team out of state, networking locally could offer valuable connections, resources, and support to help you on your REI journey.If you’d like to reach out, I’d be more than happy to assist with building your network or exploring investing opportunities here in Nashville.

Could you recommend any resources or provide advice on the best way to approach this?

I wanted to reach out to see if you could provide any guidance or ideas on how and where to start with this process.Any advice or resources you can share would be greatly appreciated!

You’re able to share knowledge, experiences, resources, and risk.

The way to handle it is to allocate expenses based on the percentage of the home’s square footage used for rental purposes.Here’s how it works:Calculate Rental Percentage: Add up the square footage of both the in-law suite and the rented room, then divide by the total square footage of the house.Apply This Percentage: Use this rental percentage to deduct a proportionate share of expenses like repairs, utilities, and mortgage interest.This post does not create a CPA-Client relationship.

Can you please clarify "keep your money in the taxable bucket and allocate accordingly"?

Here as a resource to help educate you! 

 @Chris SeveneyThe long-shot play I became aware of; Capital Improvement Project Funding that the city/county have allocated for projects that meet 2 criteria.Have a lifetime greater than 10 yearsCost more than $50,000I believe, even if the water and refuse collection run is only 1000 ft, that may not qualify but to do it "right", that two mile run would allow the entire subdivision to be supplied with services.