Real Estate Partners

**RUDY351** · 02-05-2008, 07:14 PM

Me and a buddy are buying a condo together as partners. It is at the shore and we plan to rent it in the summer months. My question is what happens at tax time? Can we both claim our losses each year split equally? Do we need to form an LLC? Can we form an LLC after we make settlement?

Thanks for your help
Rudy

**Greg** · 02-06-2008, 05:39 AM

This is what CPAs get paid for. Answers to this question from real estate agents might cost you money in the long run.

**krolfe** · 02-06-2008, 08:15 AM

You should definitely consult a CPA with questions like these. My question is this: why are you buying the property when it sounds like you are already expecting a loss?

**carlam** · 02-13-2008, 02:41 AM

It sounds like you need to do a little more homework before jumping into this. Besides the tax issue, which you should consult a CPA, have you researched what it would take for the rental and management of such a property?

Buying with a partner, friend, buddy... should also consult an attorney on the best way to pursue any type of partnership adventure such as this. More than taxes at stake here!