Real Estate Syndication Tax Benefits

Real estate can be a great alternative asset class for investors of all stripes — accumulators, early retirees, regular retirees, trust fund beneficiaries, and more.

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Let’s get into some of those incentives and benefits that investing in a real estate syndication provides.

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Here are the 7 Best Real Estate Syndication Tax Benefits

Although commercial real estate typically appreciates over time, the IRS allows you to depreciate its value through what’s known as a paper, or phantom, loss.

A cost segregation study identifies and reclassifies personal property assets to shorten the depreciation time for taxation purposes, which reduces current income tax obligations.

Bonus depreciation was increased from 50% to 100% on certain qualifying assets.

A capital gain occurs when an asset is sold for more than it was purchased for. Capital Gain = Selling Price−Purchase Price

This section allows taxpayers to defer taxes by exchanging one property and replacing it with a like-kind property.

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Real Estate Syndication Tax Benefits

Real estate can be a great alternative asset class for investors of all stripes — accumulators, early retirees, regular retirees, trust fund beneficiaries, and more.

Let’s get into some of those incentives and benefits that investing in a real estate syndication provides.

Here are the 7 Best Real Estate Syndication Tax Benefits

Although commercial real estate typically appreciates over time, the IRS allows you to depreciate its value through what’s known as a paper, or phantom, loss.

#1 Depreciation

A cost segregation study identifies and reclassifies personal property assets to shorten the depreciation time for taxation purposes, which reduces current income tax obligations.

#2 Cost Segregation

Bonus depreciation was increased from 50% to 100% on certain qualifying assets.

#3 Bonus Depreciation

A capital gain occurs when an asset is sold for more than it was purchased for. Capital Gain = Selling Price−Purchase Price

#4 Capital Gains

This section allows taxpayers to defer taxes by exchanging one property and replacing it with a like-kind property.

#5 1031 Exchange

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