Owning 30% of a rental property but I do not own any of the rental income, can I still depreciate my share and loan interests? I am basically only financing 30%.

[geotrouveout]

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?

[Critter]

If 3 of you have a venture together you need to form a partnership and file a partnership return ... this is the only way you can deduct the expenses without having income ... seek a lawyer to get this set up legally and a local tax pro to be educated on partnership returns.

[geotrouveout]

The operation is OUS so it is not under US juridiction other than what I can or cannot deduct. It is a form of family partnership in own name specific to that country, there is not a common LLP type of corporation but it presents local tax advantages.

[Critter]

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?   NO you cannot.

[geotrouveout]

I suspected that, thanks