And then you can allocate it in a way that will meet your risk profile the best.

If the property sells in 3 years at a gain of 100k, it will likely be a capital gain unless the partnership is a dealer.Part of the gain calculation should be proceeds allocated to the land interest and be pure long-term capital.The amount allocated to the building will consist of 1250 recapture and unrecaptured 1250 at 25%.The depreciation is an ordinary deduction that would be lumped in box 1 of the K-1.There may be 1231 and 1245 if they cost seged.These amounts flow to your 1040 on Sch D and 4797 among others.

From 121 and the regs thereunder:(5)Exclusion of gain allocated to nonqualified use(A)In generalSubsection (a) shall not apply to so much of the gain from the sale or exchange of property as is allocated to periods of nonqualified use.

Once you have found them, you could be totally upfront in your marketing communication: no need to sugarcoat the current situation and tell investors this is a bet on the future so they shouldn't invest money you can't but they might want to allocate part of their speculative bucket.Hope this is helpful.

Don't forget to allocate a portion of the original purchase price to land which is not depreciable.

I ask because partnerships are required to withhold income allocable to foreign partners.

Be sure to consider the value of your time and effort involved however and make sure you allocate for this when making your decision. 

I'm ready to allocate money to assets and start building my wealth.

And this project missed that mark by a wide margin.Now we can accept that construction contracts often go over the allocated time budget.  

You need to allocate the purchase price between the building and land first based on fair market value which you can find on your local tax assessor website.You can only depreciate that portion that is being rented out, as depreciation is allowed in this case for property held for the production of income under 212.You cannot bonus a house (at least not the structural component), ever.Bonus is under 168(k) and is for property with class lives of 20 years or less, and commercial or residential is 39 and 27.5 respectively.