Investing in Multi-family syndicated deals complicates your taxes — you need a professional that understands passive loss/income and how to minimize the tax impact. For best results you should consistently redeploy funds as you rotate properties in and out of your portfolio. This allows you to utilize suspended losses, reduce tax, and continue growing your pool of passive losses.
Private Placement Memorandum (PPM) investing requires a connection with the syndicating partner or Lead. Membership fees in some investment groups may be a deductible expense.
As a passive partner in MF syndicated deals, your income/loss is passive; therefore, losses cannot be used against your taxable income and are carried forward until a property is sold or you otherwise have passive income. Any membership fees for investor groups, i.e., Lifestyles Unlimited, will increase your passive losses.
Doing what we do best, so entrepreneurs and small businesses can focus on what you do best.
Lori Dewey, CPA
Lori@DeweyTax.com
972.600.8696
