The remaining $200K becomes additional depreciable basis to you - a nice bonus.

This plan also is a great tax shelter allowing you to shelter big chunk of your income from taxes with generous contribution limit of $58K for 2021. 

After completing the sale of my full-service restaurant in October and then the sale of my pizzeria last week on 2/3 (just finished training period with the new owner this afternoon), I am officially ready to give my full attention to my RE business.Major bonus points to the restaurant industry for teaching me the importance of knowing EVERY.

Bonus Question: what is a good habit for when I go to improve my tax strategy later-on?

@Kenny Hall, @Nick Giulioni: thank you for being generous with your time.

Rather, it should be looked at as a bonus!

My investors  has enjoyed the price since 10% to 15% by the time SD is complete and not repair expense for next 15 years and bonus for me ...very easy to rent since no headaches of repair management 

Tax benefits from bonus depreciation can be a major advantage to syndication.

Bonus points when your tenants are contractors, plumbers, electricians because things get fixed asap.

A water heater is not a 5yr GDS asset and thus not eligible for bonus depreciation or Sec 179.