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how is joint tenenancy taxed with business partners

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L D MCclain

Junior Member
What is the name of your state? Colorado
I am looking to attract an investor to help me pay the down payment on a fourplex. I have heard some partners fogo the legal step of forming an LLC or S corp in favor of a joint tenancy agreement as banks are not as willing to extend loans to the former. If the mortgage is in my name can my investor still enjoy 50% of the depreciation and mortgage interest deductions on his Taxes?

Thanks
L D
 


HomeGuru

Senior Member
L D MCclain said:
What is the name of your state? Colorado
I am looking to attract an investor to help me pay the down payment on a fourplex. I have heard some partners fogo the legal step of forming an LLC or S corp in favor of a joint tenancy agreement as banks are not as willing to extend loans to the former. If the mortgage is in my name can my investor still enjoy 50% of the depreciation and mortgage interest deductions on his Taxes?

Thanks
L D

**A: no investor in their right mind would do that. For starters, JT is the worst type of tenancy for investors. Next, if the mortgage is only in your name, the investor cannot take automatically the deduction.
 
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L D MCclain

Junior Member
Ok, so there's no solution? Wait another year or two till I have all the money myself. Keep looking until I find a bank that will finance a loan to a newly formed LLC? (tried about 24 so far)
 

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