I am looking to break into the real estate investment group and am particularly interested in RE syndications. I have no other passive real estate income and am a W2 employee.
Reference depreciation, the syndication documents specify that “such loss will be available to a Prospective Investor only to the extent of the Prospective Investor’s passive income from other sources.” which I believe is straight out of the tax code.
As I mentioned, I have no other passive real estate so does that mean I can only carry over the depreciation losses until I have a second passive income source (only then I can offest that income with the paper losses) OR can my cash flow distributions gained through the syndication over the next few years be reduced by the paper loss?
Unless I understand wrong, it almost seems like I need a rental property in order to get the benefits of the depreciation from the syndication.
Thanks for the help in clarifying!
