My in-laws already have several other rent houses on the property.The property is not going to be sold (it is needed retirement income for my in-laws) and my wife is the heir.In addition to rent payments, we would also cover paying property taxes on the improvements we have made, and bear 50% of the costs for maintenance/repair of shared use facilities (electric gate, road maintenance, etc.)Can you explain how leasing for $1 per year and splitting profits through a partnership would be preferred to essentially splitting profits as a form of rent payment?

@Tim LindstromTo learn more about the prohibited transaction rules, see the following. https://www.irs.gov/retirement-plans/plan-particip...https://www.irs.gov/retirement-plans/retirement-pl...

Im retired with my pension and rental income I gross just over 107k yearly.

@Brent Coombs  good points in my BRRR days when I was HML to CA buyers who were then BRRR and taking 10 to 20k cash out refis in 90 days of owning the home and retiring my HML ( loved it from my perspective LOL)  the investors would get this money and you would think they would pop It into their reserve accounts.. but I suspect many a boat... .exotic travel they they deserved, new car, clothes Jewerly etc etc was purchase with these funds... lack of reserves kills investors... this is a classic example

But because of real estate I am totally free and retired.  

Jay Hinrichs, my Dad would but he is retired and has a mortgage and outstanding debt...so I don't know if that would help or hurt the scenario. 

I would recommend evaluating your stock/bond/growth distribution with a short time frame.For instance, someone retiring within the next 5 years would be extremely conservative, as to preserve their principle and make roughly around 3-4% on dividends.

Or does it not work cause they are retired and business deductions cannot offset unearned income?

I need to keep finding properties to flip in our "retirement"!

It sounds like every business that closes up shop in this town is not from failing, but rather from the owner retiring.