3 of us are purchasing a rental property in co ownership (30%+30%+40%).
I will own 30% of the property and finance it using income from another rental property I own in the same building. However, for 15 years, I will not collect any income nor will I be responsible for any expenses other than bank interests on my loan.
100% of the income is flowing to the 40% co-owner for that duration. After 15 years, the owner collecting the rental income will equally concede 20% to me and the other 30% owner so there will be two 50% owners and at that time I will collect 50% of the rental income.
My question in regards of the IRS is, will I be able to depreciate my 30% share of the property and deduct the loan interests, although I will not collect any income at all, yet the property will be fully rented?
