ThomasM125
Expert Alumni

Business & farm

Money you contribute would be added to your partner's equity accounts based on who contributed the money. If the funds were used to purchase or improve real estate, then you would add those expenses to the cost (basis) of the property.

 

If all you are doing is purchasing real property to improve or hold for later sale, then all of your costs would be allocated to the cost of the property and would not be deducted on your tax return until you sold the property.

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