Depreciation to some partners & not to others in same property.
A syndicator has told me they can give a better return to IRA investors as they don't need depreciation and her accountant does this type K-1 schedule. This would mean the people investing from their personal savings would get a bigger write off and less cashflow the way this is structured.
Other Syndicators get their cost segregation in place and then give a higher cashflow return to the equity partners.
This sounds the opposite to me. And a confused mind says "NO". I need to be able to explain to potential partners.
As the real estate matchmakers for your financial freedom and a long time real estate investor, I like creativity. If any CPA could give me the IRS code or supporting information, I would appreciate it.
If this is true, why aren't all the syndicators having their CPAs doing this type of accounting for their equity partners?
It seems a great disadvantage at the time of sale to the investor who used personal funds as most syndicators do not 1031 to avoid taxes. This means all depreciation must be recaptured.
I thank you.