TIC Syndication: Does it apply for a QBI Deduction?

[Anthony Barbato]

I have an accountant asking if our syndication is eligible for a QBI tax deduction. Under the rules around QBI, it says that a REIT and qualified PTP income is eligible for the QBI deduction.

For reference, here is a link to the Org Chart: https://drive.google.com/open?...

There are two ways investors can invest in the syndication:

Cash:

Cash investors will invest into Roseleaf LLC, the holding LLC for the portfolio. The holding LLC has a TIC interest in each of the three properties. The income to investors in Roseleaf LLC is circulated through rent paid from the three properties to Roseleaf LLC.

1031 Exchange:

Investors such as Michael D. invest into the TIC so that they can be directly on title. They are in the TIC with Roseleaf LLC, the manager of the facilities.