Interest payments and depreciation are excluded from the calculation.Here is an example that illustrates why they exclude interest and depreciation.

Lol it was for illustration purposes to drive the point !  

Before everyone starts to poke holes in my scenario here, I do realize that there are many, many costs that go into a deal, but I’m trying to illustrate a concept here…just pretend with me.

This illustrates that Section 8 is not necessarily 'guaranteed money'. 

Since you are new I’ll illustrate an example that aligns more and more possible,2008 friend and I bought a home together for 200k. 2011 he decided to leave and the pmt of 1390 I could not afford alone and house would maybe fetch same price, resulting in paying to sell.

I wouldnt be soliciting for anything I wouldnt do myself, and part of the deal would illustrate this.

To illustrate my question using a simplified example: if the total proceeds of sale of the partnership owned property are 500K, and my subsequent share is 250K, could then leverage my amount due for capital gains of 250K to invest in a QOZ property?

Illustrates the importance of understanding prior uses of property. https://www.pnj.com/story/news/2019/10/11/santa-rosa-county-couple-finds-dump-new-property-near-gulf-breeze/3913016002/

Wish I could claim all the credit for using this effective illustration, Joe, but this chart is what @Scott Trench uses to explain his approach to financial freedom in Set for Life. 

I'll continue to upload photos of completed buildings and units as they are available and will also break it down by building for a more comprehensive look and to illustrate lessons learned in a more precise fashion.