Just remember that with the actual expenses, you will need to allocate only a portion of those expenses that relate to the business.

This accelerates the depreciation because before now, the whole property cost was being depreciated over 27.5years.I have also had clients who have used reasonable methods such as allocating a % to personal property like 20% and 20% to land and the 60% to the building.

When your parents gifted the house to you it was gifted with their basis, gifting it back it still maintains the same basis.The 80/20 rule is only one way of allocating building and land.

I would be more concerned with them being unstable and up and down and up and down (volatile).In many cases not having the rent is BS.They just decided to pay other things before you.Just like people saying they don't have time to exercise but when you dissect their schedule and allocation of time there is plenty of time there.

What would be a recommended formation in Texas to acquire a property through an limited liability entity that will have limited partners contributing funds and a GP as a manager so that GP can maintain max control and profit/equity allocation may not necessarily tie to cash contributions.

The family operating agreement can state who is allocated any income from certain ventures.

That's not a charity I would donate to and I certainly hope you wouldn't allocate your hard earned money to such as cause.

Make sure in your audit you know how they post and allocate items, if it's a mom and pop park, they probably are not accountants and thier tax guy only knows what he is given most often, it may or may not be accurate.

RUBS stands for Ration Utility Billing System, and uses an allocation formula that divides a property’s water bill among its residents based on a ratio of floor space, number of occupants, or some other quantitative measures.

It destroys the self-esteem of the people receiving the freebies, discourages those who do work, and there's a limited amount of resources everywhere and decisions always need to be made on how to allocate those resources.