Hi @Shafi Noss,I'm not a CPA, but my understanding is the appreciation realized on sale of a property are capital gains that are passed through to the LPs and subject to the same capital gains treatment as stock sale gains (as an example).One other thing to keep in mind is that any depreciation realized during the investment (including the accelerated depreciation we all love so much) is deferred, and will be used to lower your tax basis which can also increase the capital gains you show (unless you're rolling into a 1031, of course).Hope that helps.

We have a lot of debt and a limited ability to stimulate our economy due to interest rates being so low.

We are looking at building a model where we refinance to pull cash out and return capital to LPs.

Now if this is the trigger for a systematic recession over the next year that might cause things to significantly decline over the coming couple of years  but that is a long way off.Trump will borrow every dollar imaginable to try to keep the market going and that will have bad effects down the road and the fact that rates are already at zero makes it very difficult to stimulate more.

Some GPs and LPS are about to learn that MF isn't all sunshine and rainbows. 

The Fed rate cut is to stimulate banks to lend to businesses for the most part...

Foreclosure on MF properties are unlikely with the current stimulous package - at least that is my hope. 

It seems like you may now be taxed at short term capital gains, since you presumably only owned the new project for less than a year (I am making assumptions on the timeline).Additionally, to keep any 1031 piece in a deal, you would likely need to create a TIC structure to bring LPs into one LLC and the 1031 owns the other portion.

Taking a look at those $138 flights to Hawaii to help stimulate the economy later in the year. 

The government is talking about stimulating the economy with One Trillion dollars ($1,000,000,000,000).