Depreciation & cost segregation for Syndication deals

[Brandon Craig]

Hi All,

I am looking into my first syndication deal and if I was curious what tax benefits apply to someone who's about 3-4% on a 1.8mm deal that includes an 18 unit apartment and 6 air bnb's? 

I would love to be able to offset some of my W2 taxes.

Thank you,

Brandon

[Bonnie Griffin Kaake]

@Brandon Craig  Unfortunately, unless you are qualified as a Real Estate Professional you cannot use passive losses against your W2 income. And, it is very rare that the IRS will allow you RE Pro status if you have a W2 income. You can only use those passive losses that are generated with cost segregation against the income on that particular property. If you own other passive income you should discuss with your CPA/tax professional about aggregating all passive income properties so that you can offset the income on one with the losses on another. There is one other option that could help and that is if your spouse can qualify as a RE Professional. I hope that helps. If you need more information, let me know.