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Offsetting Earned Income with Passive Losses
You hear a lot that there are great tax benefits from investing in syndications as a passive investor. That you are able to offset your income from W2 or other avenues (even if you are not a real estate professional).
It is my understanding that if passive losses can only offset passive gains. So unless you have material participation (as an LP likely you don't) how would the tax benefits of depreciation, etc affect anything more than just the cashflow (passive gains) you receive from the passive investment?
Am I understanding this correctly?