So for syndications the accelerated depreciation would be offsetting qualified dividends rather than ordinary.But since the distributions form a small fraction of the total gains from the syndication (most of the gains are ltcg), chances are high that accelerated depreciation from the next deal will offset a big chunk of ltcg from the exited deal, irrespective of whether the distributions during the hold period were treated as ordinary or qualified dividends.I agree that most people don’t look at depreciation as a loan/subsidy by the govt, maybe because their ego doesn’t allow them to admit that their investment would not produce competitive yields without subsidies or maybe because they don’t understand the entire value chain. 

I am trying to form a step by step plan to help me stay on track.I would love to hear how you guys purchased your first rental property and any tips you use to stay focus and form a plan.

I suggest picking a few markets that fit your criteria and start to form a team in one of them.

Hi Shaun, Once you confirm that the site can be rezoned to meet your intended uses(s), you need to run a pro forma that reflects the market conditions and realities for the product you plan to create.There is (or should be) great upside potential in each phase of the trip.

If I did this, I would have to form a new LLC if I wanted to partner with a different investor on another deal.

If I did this, I would have to form a new LLC if I wanted to partner with a different investor on another deal.

If this is someone you have worked with before or someone you trust and have confidence in then you should form a legal partnership including a partnership agreement that clearly conveys what each of you is responsible for and how you will each be held accountable and the penalties in the event that one party is not doing whats expected of them.

If they borrowed, then there is a deed of trust (or mortgage in mortgage states) recorded with the county recorder's office which will show the deed of trust, lender and amount of funds borrowed.So to add to all of this, you must first FORM a relationship with these buyers and that takes time, it does not happen over night.

The funds will be held by 1031 Exchange intermediary.Do I have to buy the new property under same LLC "A" or can I form a new LLC "B" to hold the new purchase. 

In your case, you have the best/main reason to form a LLC as you are investing with non-spousal partners.In your case, its necessary since you need, or should have, to have "all" your options/contigencies figured out in advance.