Normally you are only entitled to a deduction when you are legally required to make the payment.However, normally people would just list all the expenses on the partnership return and distribute the K-1 to the partners.

@Jimmy Dudley  its sort of depends on where you live and closing customs.for instance on the west coast there is no such thing as a wet closing.. or having all parties come to the closing table.. simply never happens.so when we sell something here I usually go in and sign ( if I want to I can also just have them e mail docs and I sign and they send a courier to my office.. )this is done 2 to 10 days before closing.. then the buyers come in the 3 days before usually because they have their 3 day right of recession ( owner occ mortgages)  then the loan package goes back to the lender.. then the title company has to record in the morning.. and has to send recording numbers to the lender then the lender funds.. then the next day once this is done title company will cut checks or wire proceeds.. for us 100% wires we never get checks.. its always kind of comical when I am sitting in my office in Oregon closing a deal in some east coast state and the closing attorney sends me an email with the time of the closing and wants to know if that time is good for me like I am really going to be there..

location! location! location! thats the REI mantra, we know. Question is, 'but where?'...Open question is for for cash-flowing investment properties, which western states/cities/neighborhood should we look at? Seems l...

I finally got a third party contractor to inspect the property and about 30% of the work has been done. 

You need to study your state landlord tenant regulations and ask for a opinion from a legal rep familiar with the codes.

To my knowledge I am not  aware of codes that will legally allow renting a in-law suite.

I personally would rather lose a few bookings here and there, than put myself in any possible legal trouble. 

No legal advice given.    

That's the best way for a ton of legal reasons.

What is the landlords responsibility regarding parties or illicit activities by a tenant?