Using passive losses from syndication (K-1) to offset income from other SFR rentals

[mgranp]

Hello,

Can I use bonus depreciation losses from apartment syndication (form K1) to offset income from income-producing single-family rentals? I own 4 SFRs and have an opportunity to invest in a syndication deal with 60% bonus depreciation this year.

Other details: Both I and my wife have W2 jobs and can not take real estate professional deduction.

Thanks

[Mike9241]

if you do not actively participate in the syndication its passive losses can only offset the amount of net passive income from the SFRs. Any excess would be a carryover to the following year. Review form 8582 where the limitation is calculated.  also realized with such a huge deduction in year one it could throw off income in year 2 and beyond. 

certain states, if you have a state income tax may not allow the full bonus depreciation regardless of active or non-active prticipation. 

[Rick19744]

Your facts aren't clear, however, if the apartment syndication k-1 is from a publicly traded partnership (PTP), there are special rules for those structures.

Losses from a PTP can only be used against income from that specific PTP.