Investing thru REI companies

[Gina Tavizon]

I know I need to verify tax information through a CPA or accountant but I wanted to ask here anyway. If you are investing as part of one of the real estate companies out there, like Open Door Capital, do you get the same tax write offs as if you were investing in any other real estate?

[Taylor L.]

It's generally going to depend on the deal, so always always always be sure to read and understand the legal documentation you are provided. 

Many syndications will pass depreciation on to investors, because investors want paper losses as a benefit of their investment. Cost segregation and accelerated depreciation are quite popular and you'll see many sponsors using cost seg these days. So you may end up seeing a paper loss on K1s while receiving cash flow distributions. There are also depreciation recapture taxes to consider, so be aware of the full picture and, as you said, discuss with your CPA.