Help understanding a LP K-1 net loss

[Ryan Tyree]

I invested in 7 syndication funds in 2023 as a limited partner with the expectation that I would generate first year losses from cost segregation that I could use to offset my gains on my personal real estate investments (self storage).  The K-1s I received all show a Net rental real estate income loss on Part III line 2 as expected.  The software my accountant is using is writing off these losses against my W-2 income which is telling me I am entitled to a refund.  We went on to talk about deferring some of these losses for a net impact of 0$ so I could apply these to gains in 2024.  From everything I've read something doesn't seem right here.  I underpaid on W-2 slightly, had long term capital gains on stock sales, and a small income gain on my personal K-1.  I was only expecting the limited partner K-1 losses to offset the personal K-1 gain.  Any experience others have had is welcomed.  I live in WV and own my self storage rentals in WV.

[Jason Watson]

Sorry to be this guy... but what a client hopes or expects is a product of poor or non-existent tax planning. Far too many taxpayers draw up their tax return in their head without a real plan. Or they talk to their bartender or produce clerk, and not their tax pro. Not saying this is the case... but with proper tax planning there should be zero surprises. Like none.