Should your real estate syndication use an S corporation, a C corporation, or an LLC taxed as a partnership? In this episode, Thomas Castelli and Nathan Sosa break down the real tax implications behind entity structuring for syndicators, fund managers, and passive investors.
They explain why LLCs taxed as partnerships are typically the gold standard for real estate syndications, where S corps can accidentally limit depreciation benefits, and how C corps can create double taxation problems that investors often overlook.
You’ll also learn:
- Why depreciation and debt allocation matter so much in syndications
- The hidden limitations of S corps for real estate investors
- When a C-corp blocker actually makes sense
- How GP entities and management companies should be structured
- The biggest mistakes syndicators make before raising capital
Request a free discovery meeting: go.therealestatecpa.com/mlre
Get the Ultimate Guide for Real Estate Syndications: go.therealestatecpa.com/mlreultimateguide
Subscribe to the REI Daily Newsletter: go.therealestatecpa.com/mlresubscriber
Submit your questions to: go.therealestatecpa.com/question
The Major League Real Estate podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, investing, financial, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests. Any mention of third-party vendors, products, or services does not constitute an endorsement or recommendation. You should conduct your own due diligence before engaging with any vendor.