I had expected to pay tax on the gain and the suspended losses would continue to grow until the syndications were sold.Passive losses are suspended until either of the two events happens: you sell/dispose of the investment OR you have passive income to apply these losses against.

If the goal is try to characterize a payment for past services rendered as an "equity investment" that will result in "non-taxable" income to the recipient and a future "tax loss" to the "investor" when the investment ultimately "fails," trust that the IRS has seen through that kind of dodge before and will see through that kind of dodge time and time again.    

I am very hands on in all aspects of my RE business and have always done my own taxes…When you started investing in Real Estate, you were not a Real Estate Professional and were subject to passive loss limitations when you were doing your taxes.These Passive Losses have grown and carried forward from year to year.

If its negative, you'll have to have other income to cover that loss.

Angie, double check with your insurance agent, An additional insured is sometimes limited to the financial indenification for a loss concerning the dwelling, but not liability or additional features to cover the primary insured/property owner.

I also feel the loss of MikeOH, he was one of my regular reads.

LOL - asking what the best way to generate leads is akin to asking what the best diet is.  

After doing the math, how did you justify the HUGE loss in cash flow using an FHA instead of a conventional.

This is where the down payment/payments are used to calculate the gain in any given year.Capital loss, if any, is taken in year of sale.Interest income is ordinary income on Sch B (or sometimes Sch C, depending on what else you have going on).Everything else in here is only confusing the issue.

In other words they cannot force the business to take a loss just to pay you a salary.