Multi family syndication vs owning

[David Schmidt]

Is there a difference in the tax implications when simply investing in a syndication and collecting income versus owning a multi family unit and getting depreciation write off’s etc. Would like to hear some thoughts as I am looking at investing in both options and want to weigh out options. Thanks, Dave

[Percy N.]

David Schmidt you get to share in your percentage of the depreciation based on equity contribution when you invest in syndication as well.

The difference will be that your investment as an LP will be considered passive, vs if you are an owner/operator, it is most likely active income.

Now if you are a "real estate professional" as defined by the IRS, you can write off your passive paper income loss against other active income.

Confirm with your tax accountant.