Soften the blow of depreciation recapture?

[Andrew K.]

My question is mainly around depreciation recapture (DR) after a syndicated deal is sold. 1031 isn't an option. My marginal rate is less than 25% so it feels like I'm on the losing end of taking depreciation deduction (I know it's not an option). Is there anything I can do or should I put my syndications in my IRA only?

[Ashish Acharya]

Originally posted by @Andrew K.:

My question is mainly around depreciation recapture (DR) after a syndicated deal is sold. 1031 isn't an option. My marginal rate is less than 25% so it feels like I'm on the losing end of taking depreciation deduction (I know it's not an option). Is there anything I can do or should I put my syndications in my IRA only?

 If your marginal rate is less than 25%, the recapture gets taxed at your lower rate. 

If you were at highest bracket of 37%, then depreciation recapture is actually good. You got deduction at 37% and you recaptured at max 25%. 

That is why wealthy people turn to RE. One of the benefits.