Capital Gains and 1031 Exhcanges For Limited Partners

[William Coet]

Hello,

Below is the proposed return for a syndication.  The first chart shows the estimated return on a 100k investment where 100k becomes 193k

A couple of questions:

1. If a limited partner is in a tax bracket (earning less than 50k per year) approximately how much would they owe in capital gains after the asset is sold?  I'm trying to determine what the actual return will be.  For example, will it be closer to 170k after capital gains tax?

2.  Can the limited partner use the proceeds for a 1031 exchange?

Thank you

[Evan Polaski]

@William Coet, as Jackson noted, there are too many variables to even begin.

Two things to remember, any tax losses you utilize to offset incomes, will reduce basis making bigger tax bill in sale year.  And you have depreciation recapture (currently 25%) and long term capital gains.    

As for the 1031, while you as an individual LP cannot 1031, some syndicators will allow the syndication to 1031 from one controlled deal to another.