K1 losses in year 1 as a percentage of capital invested

[Jonathan G.]

What are you seeing in regards to K 1 losses in year 1 based on forced depreciation from Cost Segregation studies?

Since 2017 , we’ve seen the following ranges

14-30 % for storage

40s to high 50s% for multi family with some low outliers here and there.

Interested to see what others are seeing

[Percy N.]

@Jonathan G., as indicated above, it will vary not only on how the partnership is structured but also on certain deal level attributes like % of debt, amount of construction/rehab, etc.

In the past, our projects have ranged from 60-85% and I think one project even exceed the invested LP capital. 

Now remember that there will be depreciation recapture when the property is sold (unless you plan to do a 1031, etc).