Syndication Tax Question

[Sam Liberow]

Hello,

Some clients have been interested in investing in a syndication deal using their self directed IRA funds. When discussing it, the following came up that I'm very curious about.

If I'm a general partner/sponsor of a syndication, can I control how much depreciation is given to investors/limited partners? The reason I ask is because a handful of clients that are interested in investing are using self-directed IRA funds (through Pensco or Entrust), and therefore cannot take advantage of the depreciation - being that its retirement money and they don't have deductions/losses to use.

That being said, is there a way to use the depreciation that they “can’t” utilize, and let benefit the investors that can use it?

[Simon Filip]

If an LLC that owns leveraged rental real estate includes a partner that is an SDIRA, the rules for UDFI extends to those partners.