There are 3 main scenarios where these strategies usually come into play: The client wants to sell a property but is sitting on it because of the capital gains implications The client sells a property or properties but hasn’t allocated the entire amount to a physical property (ie - portfolio is sold for 2.5m and identified properties are valued at 2m.

., invest in a QOF), then you have 180-days from the end of the pass-through entity's taxable year to invest your allocable share of the capital gain amount.

Maybe allocate a bit more for management.

I’m exploring out of state myself since the numbers just don’t work From a beginning allocation standpoint IMO.

As with all deductible meals, only 50% of the cost is allowed.Cant be Lavish or extravagan.Personal entertainment costs on the trip aren't deductible, but business-related costs such as for dry-cleaning, phone calls, and rentals are.Some allocations may be required if the trip is a combined business/pleasure trip, for example, if you fly to a location for five days of business and stay on for an additional period of vacation.

Something that I didn't see you mention is allocation for vacancy, repairs, cap ex.

Reporting is similar to UPE and has the same basis and tax effects.If the pship / S Corp owns a variety of income producing assets than a look through approach might be warranted and allocation is allowed based on any reasonable method. 

I can think of a couple better places to allocate $1.2m rather than a down payment for a $4m hotel. 

At most, I would allocate a little more money into my annual maintenance budget in which would slightly lower my offer price. 

By raising for it on the front end they are preserving any positive cash flow or pref for the property, if it isn't part of the raise amount they would need to allocate a larger portion of the positive cash flow towards building up the balance for those inevitable costs.. which in turn would any pref or CoC for while.