Moving from SFR to Syndication Tax Benefits

[Pratik Sheth]

I am new to Apartment Syndications. Trying to get ideas on how can I efficiently join with 1031 in place or should I avoid 1031 with TIC. Background: Selling my SFR in Austin Investment Property and thinking to put money in Apartment Syndications. How complex it is? Should I just take money now and pay taxes or its better to do go through 1031. I have heard through a friend that I can offset my capital gains from my current SFR using depreciation or something called bonus depreciation. Is it possible? Would really appreciate if someone can share ideas or their journeys who had taken similar approach in past? Thank you

[Steve S.]

@Pratik Sheth  First of all, I am not a CPA. But I did hear a real estate CPA talk about a "lazy 1031 exchange" that doesn't involve all of the rules and paperwork of a 1031 exchange.  When you sell your SFHs, invest in apartment syndications that same year so that you can take advantage of the bonus depreciation to offset your capital gains. Virtually all syndicators are doing cost segregation studies to take advantage of this accelerated depreciation. You do not have to be a REP to do this. When the syndication goes full cycle, you will have depreciation recapture, but just reinvest in another syndication in that calendar year and you will reap those tax benefits again.