Thanks so much for your reply!! I just read your response & there is a lot of good details. I will re-read. I want to take the more complicated route you outlined. Thank you!
Add'l details:
* No cash was taken out in the refinance.
* I really want to avoid the Partnership return because {S1} hopes to refinance again in the future and become sole owner of the rental property.
* Since {S2} new owner is willing to step in to help out financially, it would make sense that {S2} get a portion of the depreciation expense.
