The agreement would outline how profits, losses, and ownership interests should be divided, which will guide how you allocate the gains.  

Missing these dates can result in financial losses and jeopardize the entire deal.

Will the losses from the real estate that you buy be considered active or passive?

@Drago Stanimirovic thank you, and you are right I will probably do cost segregation studies at some point, but so far I have still been able to get to a loss on my taxes using the straight line 27.5 year depreciation schedules, I will probably do the cost segregation studies once I can't show a loss anymore, which will happen at some point as the rents increase and the amortization schedules shift to more principle and less interest.

They suffer extreme losses.

The only difference is that there might be an explainable rationale for holding on to a property, such as a well-founded belief that equity gains are coming (such as owning a house in a rapidly growing area or property where the next commercial boom is headed), whereas with gambling your odds never change regardless of your losses.

The suspended losses can used to offset the capital gains from the sale of the property or to offset deprecation recapture.

Your family is likely looking at a $1M+ loss if asset owner is transferred now.

@Alex BoulgerWell, this is where the classic tax answer of "it depends" comes into play.This could be a good opportunity for loss harvesting, if you have underperforming assets in your portfolio. 

Multi-family properties are a much stronger investment in Tampa compared to condos, especially because of the headaches with condo HOA fees—out of the 3,500 transactions I’ve done over the past 20 years, the only long-term losses I’ve had were with condos.