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Updated about 1 year ago on . Most recent reply

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237
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Ron Singh
  • sf bay area
46
Votes |
237
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Tax deductions and advantages for : Syndications VS buying+managing mf property

Ron Singh
  • sf bay area
Posted

Exploring pros and cons and also evaluating what option provides more advantages to w2 earner in terms of better tax deductions - 

A. Syndications: will get K1 form, what does it include ? prop tax,mortgage interest and cost segregation ..anything else ?

  1. if you invest 500K in Syndications, how much deduction to expect in K1 ?

  2. is it matter if invest in dec Vs Jan ? would you get more deduction if you invest in Jan? not sure if it will be prorated for case of dec ?

B. Buying/managing mf (1-4 units) for str (active involvement ) :

  per prop tax,mortgage interest and cost segregation etc assuming about 80K deduction with same investment amount(500k), since only    80% allowed this year. 

what option do you suggest for better cash flow, ROI and tax deduction advantages.

Most Popular Reply

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Quote from @Ron Singh:

Exploring pros and cons and also evaluating what option provides more advantages to w2 earner in terms of better tax deductions - 

A. Syndications: will get K1 form, what does it include ? prop tax,mortgage interest and cost segregation ..anything else ?

  1. if you invest 500K in Syndications, how much deduction to expect in K1 ?

  2. is it matter if invest in dec Vs Jan ? would you get more deduction if you invest in Jan? not sure if it will be prorated for case of dec ?

B. Buying/managing mf (1-4 units) for str (active involvement ) :

  per prop tax,mortgage interest and cost segregation etc assuming about 80K deduction with same investment amount(500k), since only    80% allowed this year. 

what option do you suggest for better cash flow, ROI and tax deduction advantages.


I am sorry to say but approaching the two assets for tax purpose should be LESS Priority because the risk profile and financial profile between those two are extremely different.

Syndication with 5 year loan and 30 Year quadplex is different in term of profile.

If you want to be strong investor focus on the longest term financing available which is quadplex, managing quadplex is not hard. I would go with direct acquisition road.

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