Tax question re: passive investor in a real estate syndication

[Jay Amin]

I'm very new to real estate investing, but have a few questions about the tax benefits of becoming a passive investor in a real estate syndication investing in multifamily residential properties.  According to section 469 of the tax code (I'm not a CPA), the losses from passive investing can be used to offset the gains from passive investing.  Does that imply the monthly distributions received from these properties are essentially exempt from federal income tax?  Also, the losses exceeding the gains can be carried forward to the following year and be used to further offset future gains?  What happens when the properties are sold?  There is a capital gains tax (20%), but there is also another tax  "depreciation recapture".  I am assuming that the losses being carried forward from year to year, can be used to offset those as well once the properties are sold?  Also, I have no intention of becoming a "real estate professional"

Thanks!

[AJ Shepard]

@Basit Siddiqi is right. A lot of time syndications will return capital first then disperse gains. The idea is that paying taxes today is more expensive than paying taxes tomorrow.