Is the RE-Syndication-Sponsor responsible for a taxable event?

[Chris Ruoff]

I just finished Gene Trowbridge's book It's a Whole New Business (great book by the way) and in the book he says that the RE-Syndication-Sponsor is responsible for a taxable event for the equity component.

"If the sponsor is simply granted an ownership interest and that interest has an ascertainable value, the receipt of the interest by the sponsor is a taxable event. The sponsor will have to report the receipt of the value of the interest and pay taxes on the value of the interest at ordinary rates."

So if the sponsor receives a 25% equity component for putting together a million dollar deal does he or she automatically pay taxes on $250,000? Even if it's done with leverage? Someone tell me this isn't true!

Or would it be 25% of the $300k down payment or what? Thanks!