Sarah SullivanFounder and CEO of SuGo Capital

Plan ahead to massively slash your taxes in 2023

Name: Plan ahead to massively slash your taxes in 2023
Uploaded: 2023-04-20T00:35:36+00:00
Duration: 38 s
Channel: Sarah Sullivan
Description: Short excerpt from a YouTube video ("Plan ahead to massively slash your taxes in 2023") where Sarah Sullivan and another speaker discuss tax implications…

20 Apr 2023 · 1 min

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Short excerpt from a YouTube video ("Plan ahead to massively slash your taxes in 2023") where Sarah Sullivan and another speaker discuss tax implications of multifamily syndication investments. They state that tax benefits from such investments can offset income generated by those investments but cannot offset ordinary (non-passive) income; they also discuss that selling a passive rental at a loss can convert that passive loss to an ordinary loss on sale, enabling offset of ordinary income but noting poor economics of losing money for tax benefits.

Are there any tax benefits in investing in multifamily syndication for an individual with ordinary income? Well, eventually, hopefully, you'll get income from your multifamily syndication. So the tax benefits from your multifamily investment can offset the income you're going to get from that multifamily investment. Correct me if I'm wrong, Tim, but it can't do anything. Preordinary income.
Correct.
All right. Got it. Right.
I mean, yes. Yes. Let's just stop with yes.
And is there something really creative people can do? No.
I mean, if you have. So let's say you only have, you know, let's put this in a bubble and say you have one, you know, passive investment. You've got a rental property that you bought 100% and it's a dog, and you lose your shorts on the sale that in a year of sale. If that's the only activity that you have and you didn't group it with other passive activities, that converts to ordinary income. So, yes, if you sell something at a loss, it's passive activity. It will convert to ordinary loss and then ultimately be able to offset that. But I'm hoping that no one is doing that just for tax purposes because you lost a dollar to save 37 cents.
Yeah. No, there's better things you can do.