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Real Estate Syndication and K1

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  • Avatar ASingh86 
    Participant
    Status: Physician
    Posts: 16
    Joined: 05/06/2018

    Hello,

    I hope this forum can give me some clarity.

     

    I invested in a real estate syndication in 2018.  There were no distributions for 2018 but I received a K1 and with depreciation and such there was a total net loss of 35k.

     

    Now suppose I made 200k(AGI)from clinical work as a physician.  Would I be able to deduct the 35k from my adjusted gross income?  If not, where do I claim this loss or do I?

    The conflicting material I have come across has been that I may only be able to deduct it from other passive income streams.

    I have also read that it can be deducted from all taxable income as long as it is in the black…

     

    Any thoughts/input/guidance would be greatly appreciated.

    #197842 Reply
    Avatar ASingh86 
    Participant
    Status: Physician
    Posts: 16
    Joined: 05/06/2018

    bump

    #197996 Reply
    Avatar Xeno 
    Participant
    Status: Physician
    Posts: 109
    Joined: 01/24/2016

    https://www.irs.gov/publications/p925

    I think it’s significantly limited unless your spouse is a real estate professional. Otherwise, you claim a small loss now and then carry the other losses forward. I’m no expert, so would love to hear others’ thoughts.

    #198052 Reply
    Avatar ASingh86 
    Participant
    Status: Physician
    Posts: 16
    Joined: 05/06/2018

    anyone with clarity on the subject?

    #198255 Reply
    Avatar Anne 
    Participant
    Status: Physician
    Posts: 778
    Joined: 11/07/2017

    No, you can’t deduct it from your AGI at that income level.  Even if spouse qualifies as a REP, I think they need to have material participation for it to count as non-passive income and involvement solely as an investor in a syndicate wouldn’t count.

    You either carry it forward and look forward to the day it helps you out (once you do have passive gains) or develop some passive gains for it to offset.

    Did you read IRS pub 925?  It should have all the clarity you need.

    #198258 Reply
    Liked by Vagabond MD

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