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Updated almost 4 years ago on . Most recent reply

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4
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1
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Leon Meytin
  • CT
1
Votes |
4
Posts

syndication tax question

Leon Meytin
  • CT
Posted

I was hoping to clarify something, can someone correct me if i am incorrect?

This example was taken from a previous post, but it was several years old so i though I would post it here

Let's say they invested $100,000 which acquired 5% of the equity. The depreciation could be $500,000 in the first year (or first 5 years), they would receive $25,000 (5% of $500K) of depreciation write off. If they received a 10% return, (which is great!) they would have $10K income, and $25K write-off = -$15K (negative passive loss). Assuming you are not a real estate professional and AGI is >150K, then am i correct in assuming the following

1)The 10K i received in the year will NOT be taxed, since its offset by losses? will that specific 10K ever be taxed?

2)since i also have 15k in negative passive loss, and I am not a real estate professional and AGI is >150K, i can ONLY offset other passive investments, such as sale of stock? so if i sell apple stock and make 15K in profit, would it be a wash? would i pay any tax on that sale of apple stock in that case?

3)assuming i have NO other passive loss that year, that 15K passive loss will be transferred to the next year? and assuming i have passive income from either sale of stock or if another syndication closes and I receive some form of payout from increased value of the syndication properties?

4)Any other tax benefits of a syndication, assuming i have no other real estate aside from my primary residence?


5)Any other ways to use a syndication to off set taxes?

Thanks!

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