Tax implications of investing in a syndicated deal

[Account Closed]

I just read this great article by @David Thompson, and want to check my understanding of taxes for limited partners in real estate syndication.

- Income distributions are taxed at ordinary income rates, but there may be no taxes at all if there are "paper losses" from accelerated depreciation.

- If cash is returned to the investor through a refinance, that is a partial return of equity and a non-taxable event.

- When the property is sold, any gains are taxed as capital gains. 

- A 1031 exchange of sorts is possible if you roll the sale of the limited partnership into a similar and larger limited partnership, but you cannot 1031 directly into your own property acquisition.

Am I getting this about right?

What have your experiences been (or those of your investors)?

Thanks!