Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

Bossier partner managed property and repairs while we managed business structure and banking account setup.

So yes, it's about knowing your business and being very specialized. 

To make taxes easier we set up a business checking account and had all the rent paid into that account and all the expenses paid out of that account.

Multifamily is considered residential since people reside in the structure. it's part of contractors license law, our testing is on it and violating can and will result in punitive actions.

I would like to purchase a structured course and have narrowed down my options to Seth William's REtipster masterclass, Joe McCall's simple land flips course, and Jack Bosch's Land Profit Generator.

Business justification of LLC-B --> This is can be a problem.

Hi @Justice JacobsI do have specific questions. 1) How do you structure the company?

I’m trying to figure the best way to structure the deal (equity, yearly dividends on cash flow, etc).

When developing affordable housing in California (more specifically Los Angeles), how complicated is it to raise capital using subsidies?Is it common for developers to use subsidies to cover 100% of the construction c...