You can get REPS status regardless of how you handle depreciation.Straight Line Depreciation - This is taken 27.5 years on residential and 39 for commercial.Accelerated Depreciation - This requires a cost segregation analysis so you can divide the total value of the building into 5, 7, 15, and 27.5 (or 39) year depreciation buckets.  

Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

Depreciate 75% of the building value (excluding land) over 27.5 years for significant tax savings.

Cash How did you add value to the deal?

and the property had a private dwelling value appraisal much higher than the public property appraiser claims. 

He is looking at a group of investors like myself to bring 25% of the project value and then procure a bank loan for the remaining 75%.

Personally, my primary residence has appreciated around 6% in market value and I live in Levittown. 

Ideally, you layout all the duties (Find, Underwrite, fund, rehab, manage) and assign a value to each of those based on how much time they might take. 

I find properties below market value that cash flow.

Do to an anomaly pertaining to the appraisal district, the total value of the two lots was divided equally between the lots instead of allocated by market value.