None of this has anything to do with your personal tax return.

We also had a transient tax and municipality as well.

@Daniel MadhavapallilYou should hire a tax professional. 

Not really a tax question as the membership % decides who does, gets and deducts what. 

And you now have to file three tax returns:- partnership tax return- your individual tax return reporting 1/2 of the partnership losses- your partner's individual tax return reporting their 1/2 of the partnership lossesAnd while partnership return can be DIY-ed, it probably should not be.

I’ve been working with real estate financials for a while, and I keep seeing one mistake that costs investors thousands: poor bookkeeping leading to missed tax deductions.🚨 Common issues I see:❌ Not properly tracking repairs vs. capital improvements❌ Missing out on cost segregation & depreciation write-offs❌ Scrambling at tax time instead of planning proactivelyI’d love to hear from the group—what’s been your biggest tax headache as an investor?

Almost every action taken in the economy is taxed and the faster the economy chugs forward the more taxes they collect.

If your friends have a rental they should hire a tax professional. 

Hence the lot on which the house resided was taxed at a 45% discount based on actual value, while the tennis lot was taxed at about 4 times what it should have been by value. 

The tax paid from your lending proceeds should be the equivalent of your tax rate I would think.