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Bradley Said:

How to determine ownership % in a tenancy in common?

We Answered:

Generally, you would want to base ownership at the % of financial involvement of each party. This can get complicated if this is different for the down payment versus allocation of monthly costs. So, to answer your questions:

1) % based on initial investment as proportion of the whole
2) Split everything the same way as in #1
3) Speak to an attorney to have a partnership agreement drawn.

I assume from the tone of your question that this property will be a rental. If it has positive cash flow, then #1 above is your only condition that matters. Profits would be distributed based on percentage of ownership. For losses, each owner should contribute their same percentage.

I wish you luck!

Guy Said:

Preparing financial statements annually is an application of the accounting concept ____. A) Accounting Period?

We Answered:

No........or............Yes..... where it applies..........A - D on the correct answer...........