Thank you for your reply I will send you an e-mail

Quote from @Rebecca E.: @Katie MillerI came here because I just had my yearly with my new accountant.

If E has any priority over B, for instance, I would not invest in this structure, given that my bank account puts me at a Class B share (side note, their Class B is a little more GP friendly on the surface, than other groups, but devil is in the detail).  

@Angelo Llamas If your cousin rents out the property, it becomes a rental once it's "placed in service," meaning available for rent, and he must report rental income and expenses on Schedule E.

You can however, write off the other unit as a rental on a Schedule E.

Rental income and expenses, such as mortgage interest, property taxes, repairs, and depreciation, can be reported on Schedule E of your personal tax return, regardless of ownership structure. 

Baselane has the added advantage of synching with your Schedule E you'll use at tax time to file your taxes.

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

If you provide any kind of substantial services like catering, car service, etc you will change you tax situation and no longer can file under Schedule E.

E Equity, how much of the home will you own on day one.