Using Passive Losses

[Ariel K.]

If I participate in syndication deals and own real estate, can losses from one be used against the other?  For example, if I receive a $50,000 loss from a syndication through a cost segregation study and bonus deprecation, can I offset a $50,000 gain from the sale of a property (even if the property is sold less than 1 year after purchase)?  Thanks!

[Ivan Barratt]

Likely not. A flip falls in the active income bucket. Syndication losses would be in the passive bucket. Except for full time real estate professionals (tax designation NOT merely a real estate agent) gains/losses can only offset if they're in the same bucket.

disclaimer: consult a "knowledgeable" CPA on this. Not all CPA's are created equal! ;)