Tax benefit comparison - direct purchase vs syndication

[Shriraj Shah]

I am trying to analyze whether to purchase an investment rental property in a SFH/MFH on a turnkey basis or via a real estate syndication. Can someone help understand pros and cons from the tax perspective for the same?

I do understand that if I am buying and managing the property myself, all my direct expenses to manage the business are tax deductible, but since I'm thinking of investing on a turnkey basis and planning to hire a property manager for day to day operations, following would be tax deductible as a passive investor.

• Mortgage Interest
• Property Tax
• Property Management Fee
• Depreciation
• Insurance
• Possibility of 1031 exchange (Future)

When investing via a real estate syndication as a limited partner:

• 20% of the pass through income from the LLC is tax-deductible

The Syndication LLC obviously would be taking the tax benefits of depreciation, property tax, mortgage interest deductions etc., but as a passive investor, is it more beneficial to invest directly in real estate than investing via a syndication? Is there a good tool to analyze both deals to figure out which would be more advantageous?