The cost was added to our debt and this grew our debt allocation by almost 9%. 

When you are preparing your tax return, remember to allocate the correct amounts to schedule A and schedule E.

If one of you already have a high paying job, maintaining the partnership to allocate the SE income to the spouse that already has W-2 above the 128,400 income base could save you 12.4% of SE taxes. 

However, de minimis amounts you pay for tangible property may be subject to capitalization under §263A, if the amounts include the direct or allocable indirect costs of other property you produced or acquired for resale.

Just the opposite,.. but, I do work with a couple investors that have that type of money and I partner with them on flips ..they provide the financial part and I supply the rest .. all the titles go in their name or their business name and the rehab funds are allocated weekly per needed basis ..along with a weekly report by me on the progrees including pictures and video's if needed ..

The % allocated to your primary residence would be tax free up to the 250/500K limits as long as you break that two year period.  

Study up on how an LLC in your state operate, then look at how an LLC allocates capital and profit/losses.

This cash, however, would be “boot,” and would requirethe partnership to allocate the resulting gain among all of the partners.A better alternative, known as a partnership installment note (“PIN”) transaction,results in the gain associated with the “boot” being recognized only by the departingpartners.

I believe with both products you will receive a K-1 that allocates you your proportionate share of expenses, including depreciation or amortization. 

I don't think we really know yet, but I think it will look something like the Domestic Production Activities Deduction is currently reported with W-2 wages and depreciable property allocated and stated separately on the K-1 for each partner.