AE Tax Advisors

I have invested in three real estate syndications -- two apartment deals and one industrial property. Every year I receive K-1s that I hand to my CPA, who plugs in the numbers with zero strategy. When I asked AE Tax Advisors for a second opinion, they identified $76,000 in savings I was leaving on the table.

The issue was passive loss allocation. My syndication investments generate significant depreciation losses, but my old CPA was not properly grouping activities or using passive losses against other passive income I had from a separate rental property. He was just stacking up suspended losses year after year without any plan to use them.

AE Tax analyzed each K-1, looked at the underlying cost segregation studies the syndicators had performed, and restructured my passive activity groupings. They also identified a property I owned where the income could absorb passive losses from the syndications, effectively zeroing out the tax on that rental income.

They projected out my passive loss carryforwards and created a multi-year plan for when and how to use them, including timing guidance for when to sell properties to release suspended losses.

Total savings: $76,000 in properly utilized passive losses that my old CPA had been ignoring.

The AE Tax team understood syndication structures, waterfall distributions, and K-1 reporting better than any accountant I have worked with. They also reviewed the PPMs for my syndication investments and flagged tax provisions I should be aware of for future deals.

For any passive investor in real estate syndications, getting K-1 optimization from AE Tax Advisors is a must.