Each year after your syndicator's CPA completes the tax return for the property, he will issue you an IRS Form 1065 Schedule K1 which will include your capital contributed in equity (your investments amount) and your net profit/loss based on all property tax deductions.

Most likely you will have an operating agreement to have a have a prorata allocation of partnership items ( income, loss, gains ...) but having one member contribute a property opens up a complicated tax provision of the partnership.

It's a gamble either way.At this point, I would recommend you cut your losses and give them notice.

To my knowledge, as an individual you can only deduct 3k in losses per year.

Obviously the biggest loss is to the agent and the opportunities he/she will be missing out on because I no longer wish to do business with them.

Are you getting the tax advantages of the loss?

If your syndications are in the first year and are value adds, typically you will have losses at this point, so most likely there won't be impacting your tax payment much.

It might make more sense to finish the project and sell at a minor loss rather than a big one.

Cut my losses and start over.

If you are creating an S-Corp LLC, the losses or gains from this operations LLC flow through to your personal taxes.