I was told by my current CPA that because an LP position is strictly passive at the 6 month mark of 2022 that when I sold my single families the IRS would not let me write any 55% depreciation loss (from my LP positions) which is 1.1 million invested and let me apply that to my 600k LT capital gain from the sale of my singke family rentals. I will owe roughtly 180-200k to the IRS.
He said the IRS will not let me offset my long term capital gains using 1 year cost seg depreciation loss on my LP position because the IRS will see that money as passive only. It honestly makes no sense because I don't believe the IRS differentiates rental real estate. I might be wrong... Again, I am considered a material participation Real Estate Professional in 2022.
