Depreciation is typically allocated according to the ownership percentages outlined in the partnership or syndication agreement, which are set in advance and follow certain rules under the tax code.However, some syndication structures can be designed with different classes of partners or special allocations, but these arrangements are subject to complex tax rules, such as the "substantial economic effect" rule under Section 704(b) of the Internal Revenue Code.

Can you explain what the designations Sale and Non-Sale mean?

For me personally, I am looking to do a furnished unit and use my creativity to design a unit.

I'm exploring different options for building on vacant land here in CA and am very intrigued by pre-fab home designs (Walls etc.. are assembled in a factory and shipped to site).

Great design, professional photographs, great location.Don't get hung up on micromarkets or submarkets.

BiggerPockets is full of resources designed to help you along your journey, whether you are just getting started or a seasoned investor.

Without that designation, your K1 losses remain passive and can only offset passive gains.If you’re looking for a true tax deferment strategy, consider a 1031 exchange for future sales to defer capital gains by reinvesting in a similar property.

-CJ Johnson Life House Design and Construction San Diego, CA 

Hey everyone,I’m exploring the idea of creating a software tool designed to streamline the due diligence process for commercial real estate transactions.

Rent or at such other places as may be designated by the parties from time to time.