Income, losses, deductions and credits allocated to each owner for the year are reported on Schedule K of form 1065.

You can make a §754 election to adjust your capital account balance up to the value that you paid for it and then book an asset for the §754 adjustment and depreciate that adjustment in the partnership but allocate all of that depreciation to you as the partner.You can always use me as your tax accountant as I will be available soon.Joe

How would you allocate?

Regarding your third question - if you are personally owning any of those, you might consider separate bank accounts for each rental property held in your name; that way any payments that are made can be allocated to the proper account.

Let's just say we lent each other $200-300K simultaneously on an unsecured basis, or allocated a similar amount to fund 70% of ARV on rehabs as they're sourced?      

How does the water bill get allocated?

If you havent already, I would allocate funds to the exterior paint job and landscaping, to ensure that it pops enough to "one-up" the other homes on the block.

In addition to the thing you mention you have to allocate money for big capital items, CPA fees, legal fees, an ugly eviction and other gotcha's.Small loans like this can be hard to get.

And the other half of the one big bedroom will have to keep a window; some people will also say that it can't be used as a pass-through - that makes the bedroom not a bedroom any longer, but a hallway.Sounds like you have enough square footage within the building to do this, but the layout and allocation of space still might not make this feasible to do.

I Would greatly appreciate any info on how you handle/allocate the collected rent.