Therefore, a distribution is generally non-taxable.

Does it also get added back to the home cost bases thus increasing your taxable gain?

This is a non taxable return that reports thr partnership income, expenses, etc.

Here's my stab, others will share their input:1. what you receive as distributions in a tax year is not going to match your taxable income from the syndication on your K1... otherwise, from an LP's perspective I'm sure you'd want to receive your return as quickly as possible.2. depends entirely on the operating agreement and syndication structure.3. same as #2 above These are broad, high level answers. 

They may not have any taxable gain to begin with if it is their personal residence and lived in it for 2 out of the last 5 years.

Is this property tax (Taxable) reported as a yearly amount?

Does anyone intentionally report higher taxable income (and obviously pay higher taxes) so they can qualify for financing, such as heloc or business line of credit?

I would take caution in how you collect your rental income and take a measure of safety when drafting your lease agreements, but make no mistake, the federal government stands to make a significant profit with this industry and there is NO WAY they're regressing all the statewide reform, taxable revenue, medical benefits for patients and starting another rebellion amongst the MAJORITY of many states' taxpayers to shut something down that is proving to be one of the biggest cash cows it will see in a long time. 

So, your gain would not be taxable because you have owned and lived in the house as your primary residence for at least 24 months out of the last 60 months (2 out of the last 5 years).  

She is not the party type, but I know the risks are there.Put the house title in my daughters name and have her claim the income on her Colorado State Taxes, she owns the property and generating income as a resident and taxable at her tax rate (smallest).She switches her Drivers license and Car Insurance to Colorado, she is now a resident with an income property she can live in years 2-4 after one year in the dorms.The wore case is CSU does not grant her residency and she offsets the cost of living during years 2-4 with the rental income and has a place to stay.I think Im missing something, and would love to know if anything has done this, Parents out of state, child claimed as in state, etc.Pete