Better yet, have an attorney draw it up since he will know what questions to ask you two. commissions are earned and should never be put back into the project your partner will owe personal income tax on it.. if you want to get a credit for it.. you have the seller lower the price by the commission that is how you handle that.. if its to late then its his money and he should pay tax on it and keep the rest.

Pro is interest is a write off on taxes.

I made 50k last year on taxes and have a 700 credit score.

In the more recent past, there is also usually a set-aside for taxes/insurance to stay up on the property if there is little or no income coming in.   

Expenses like this include things like property taxes, insurance, maintenance, administrative and office costs, payroll, marketing expenses, and property management fees. 

So, both my wife and I are full time W2 employees and are in the 24% tax bracket, and I came across the short-term rental loophole which sounds really amazing for taking write offs and using them to reduce your W2 taxable income, but also equally difficult to qualify for, unless you are within a short driving distance to your property.  

I will be house hacking my primary home and I am wondering that are the implications on Solar tax credit and bonus depreciation?

Nor would I buy here with the looming property tax threat against STR's. 

I was wondering if there are any potential tax deductions we could take as a passive investor. 

I am happy to speak to what I have seen as the most common set up from a tax perspective to give you a starting point for a deeper discussion, but ultimately you will want to speak with your CPA in conjunction with an asset protection attorney because this requires a deep dive into your specific situation.