Also, are these grants non-taxable?

Changing the use does not create a taxable event. 

Investors currently pay a 23.8% top rate on long-term capital gains if held in a taxable account for more than a year.

Any money you walk with is taxable, and money less you invest is taxable.

If I understand, this means that any loans that encumber the asset are deducted from the net profit, therefore lowering the taxable basis.

I understand that money is taxable.

There are too many variables in each situation to say whether your tax professional did everything he or she could to reduce your taxable income through depreciation, improvement write offs and governmental administration changes, but you are asking the right question.My wife was an accountant before leaving the professional world to focus on our rental business and our children.

As far as I can find1. passive losses can't be used to offset depreciation recapture2. you can fully deduct suspended passive loss from the profit when you sell your rental property - you must sell the entire property and must be taxable event - recognize income or loss, sold to non-related party3. you can't use it to offset the capital gainI guess the question is if your MF syndication is sold, is the profit "capital gain"?

When and IRA engages in a trade or business on a regular or repeated basis, it is taxed at trust tax rates on Unrelated Business Taxable Income (UBTI).

You CPA will have to determine the taxable implications from the “note” verses a “cash” pay off until the note is paid off.