I have done it once and I won... but I also put up 40k and release it too the seller and they would not come to closing  and did not have the money to pay me back.. so I had no choice in the matter.another 2 years and 15k in legal fees and the only reason the legal fee's were that low the seller would never show to court or answer anything .. if the seller bows their back it can get real expensive.

But it will work for your legal arrangement.

I informed them I had their signed and dated termination letter and that legally they needed to be out by 11:59 pm today or I will call the cops and pursue further legal action against them.  

@Lauren Keen I am not sure one way or the other if you can take the deduction since I don't have all the facts, but I can tell you that the real estate professional designation is not a requirement to take the home office deduction with respect to a rental activity.There is nothing in §280A (the home office section in the tax code) that mentions being a real estate professional is required in order to take the home office deduction for your rental activity.However, in addition to the rules regarding the space itself, there is the requirement that the taxpayer's rental activities rise to the level of a trade or business, which the Treasury has conveniently never defined for us.But it seems that rental activities would rise to the level of a trade or business if the activities are substantial, regular, and continuous.However, there is a case, Curphey v.

Just to make sure Im being legal)

This would be to simply create an LLC where you and your partner are 50/50 members (if you think is fair) and lay the structure, responsibilities, etc out in the operating agreement.Consult all of this with your CPA and your Attorney, since I'm not qualified to offer legal or tax advice.That being said, that 50/50 split will ultimately depend on how much value is each of you bringing to the table.

Depending on the base, you should be able to have the Legal Office do one for you for free (along with your will and all that jazz).I'd recommend a family member or very trusted friend, and set expectations with them.

I have found people show you business insurance and then after words they cancel or do not renew it and don't tell you.It's too much risk with no upside for you.No legal advice given.

My question is: How do we legally structure the partnership to reflect the ownership (20/80)?

Whatever they think you have done would have to be worth the legal costs to try to recover.