Open Door Capital and K1 Investment losses

[Matt Pulkrabek]

My question is regarding passive real estate losses. I am a real agent and investor, therefore I am considered a "real estate professional" for tax purposes. With that being said, my accountant has always allowed me to offset income with losses from investment properties. I recently had a conversation with my accountant regarding investing in Open Door Capital. ODC typically does cost segregation on their Funds, which accelerates depreciation up to 40% of the asset purchase price in the first year. My accountant is unsure whether I could use the ODC K1 losses to offset income because I am considered a limited partner and not an active owner. Any advice would be appreciated.