Also remember that contributions to Roth IRA or Roth 401k are made post tax, so there is no tax deduction but are able to grow and then take distributions tax-free.If you are eligible for a Solo 401k - you can contribute up to $53,000 per year (plus $6K in catch-up contributions for those who are over 50) - that will definitely lower your tax bill. 

My idea would be if 5 people wanted to put in 20k each, we could invest 100k in a fund, or possibly reach a higher level on a syndication which may result in a better distribution pay-out.What would be some of the true business/tax challenges others foresee in creating a multi-member LLC with other accredited investors so that we can pool have multiple members pool money together to invest in these 6-figure syndications and funds? 

Reference depreciation, the syndication documents specify that “such loss will be available to a Prospective Investor only to the extent of the Prospective Investor’s passive income from other sources.” which I believe is straight out of the tax code.As I mentioned, I have no other passive real estate so does that mean I can only carry over the depreciation losses until I have a second passive income source (only then I can offest that income with the paper losses) OR can my cash flow distributions gained through the syndication over the next few years be reduced by the paper loss?

Don't forget 1.5 year of holding time is generating about 60-70k in positive cashflow which gets distributed quarterly.

How often do you pay out investor distributions – monthly, quarterly?

What's happened to the culture of thinking and debating if we are quoting someone whose "legal" opinion is tied to income derived from such opinion.Can we at least agree to question the source of this opinion and advice?  

I currently own and operate 4 communities that pay out distributions here in Texas but not at the 20% level because they are yield play newer properties.

The structure surrounding the derived opening bid is set by statute. 

In Stessa, I can distribute the overhead to each of my properties, but in general things like website hosting and my use of propstream has nothing to do with any of my properties as they are general business expenses. 

@Rob Hakes I'm currently investing with Holdfolio and their distributions are taxed as partnership income on a schedule K-1.