In a cooperation agreement, the owner of the property enters into an agreement with the owner/promoter to demolish and rebuild the owners` land and sell part of the new land to the owner (for example. B one or more floors) and to keep the other parts with him after the renovation. Recent amendments to the Cooperation Agreement under the Income Tax Act `1961 As this CCA shows, the IRS will consider all the facts and circumstances in determining whether cooperation between two parties is considered a partnership. Taxpayers who participate in cooperations that do not wish to be treated as partnerships should review the terms of their cooperation in light of the CCA to ensure that they have not inadvertently created a partnership. After reading the above article, it seems that the agreement should be sold with the owner although the collaboration exists between the owner and the owner. Some partnerships with specific properties may allow partners in such a partnership to choose from the application of sub-chapter K using the revenues on their individual tax returns on Form 1040 (Regs). 1.1.761-2, letter a). This can occur when each partner`s income can be adequately determined without the calculation of the partnership`s taxable income and the organization (1) is used only for investment purposes and not for the active management of a business or (2) for the production, acquisition or joint use of the property, but not for the sale of services or real estate that have been produced or extracted. A and B having a production and sales activity of products and the product being not an investment property, they did not meet the criteria for exclusion from the tax treatment. Today, cooperation agreements in the case of real estate are very common with more and more people who enter into such agreements for real estate. Through this article, I have tried to explain how the taxation of these cooperation agreements works, particularly in view of the changes made by the Finance Act 2017 w.e.f AY 2018-19. We are the brothers who co-own a property with a built residence.