Is there any merit in setting up a partnership (as opposed to a company) to invest in property? say 2 siblings want to buy a few apartments together, for example.
Murphyh, that's a much wider question than just the tax. Have a quick scan through the numerous threads about splitting up joint ownership assets when the co owners can't agree on a course of action.
From a tax viewpoint you are taxed on your share of the income less expenses just as you would be if you owned the property individually.
you are fully liable for all the borrowings, not just your half - if your partner refuses to pay their share of the mortgage, your credit rating will be ruined
The financial objectives of the partners may change - one may wish to sell and the other might not.
You may fall out with each other.
Joint ownership of a property should only be considered where there is no other way to buy it e.g. a couple who want to buy a larger home.
say 2 siblings want to buy a few apartments together,
What about where 2 siblings inherit mortgage free real property from deceased parents 50:50. Is it still better just to split the gross rent in half and let each sibling do their tax returns based on their share and half the allowed expenses?
If you own it jointly, I don't see how else you can do the tax return. Partnerships don't make tax returns as such. The partners make their individual tax returns.