I've done some pretty complicated deals since 1999 and they've all been 'interesting,' for sure.) 

I find this significance is often “glossed over” and simply not discussed.The losses that show up on a syndication K1 primarily due to cost seg and bonus depreciation are passive losses and can only be used to offset passive income (with the exception provided real estate professionals as you note above).To my understanding, there are only two sources of passive income:Rental real estateIncome from a business you own that you do not materially participate in.That’s it.Tax law is complicated.

It's not really that complicated.

For that reason, owning the house together will only complicate things. 

Thank you for the feedback.I just don't understand why it is so complicated and that I should feel clueless to calculate the gains tax.

Like many things in life doing simple things well can be complicated in execution.  

Can you do a partial 1031 and pay taxes on the portion that is not used?
We have a SoCal condo in an LLC that's valued at $500k.  We owe $85k.  That would leave us $415k profit.  Could we take $270k to buy one rental...

Ain't got time for that and vomiting complicated strategies at them will more likely turn them off from all types of long-term investing IMO. 

(For background--I'm both an investor and own a restoration company) The short answer is no--you don't return the difference back, but it's a bit more complicated than that.

This claim only complicated the matter more.