What Happens When an Investor Dies, Sells, or Gets Bought Out? Understanding Section 754 Elections
About this episode
This episode discusses the implications of Section 754 elections in real estate syndications and partnership structures when an investor dies, sells, or gets bought out.
What happens when an investor dies, sells their partnership interest, or gets bought out of a real estate syndication? In this episode, Thomas Castelli and Nate Sosa explain Section 754 elections and how they affect real estate syndications, private equity funds, and partnership structures. They cover when these elections make sense, when they don't, and why every syndicator should understand the impact on depreciation, investor reporting, and compliance. You'll learn: - What triggers a Section 754 election - How basis step-ups and step-downs work - Why partner deaths create unique tax opportunities - When buyouts and redemptions should be considered - Why large open-ended funds often avoid these elections - The operating agreement provisions every syndicator should review If you're a syndicator, fund manager, GP, or serious real estate investor, this is an important tax topic you don't want to overlook. Request a free discovery meeting: go.therealestatecpa.com/mlre Get the Ultimate Guide for Real Estate Syndications: go.therealestatecpa.com/mlreultimateguide Submit your questions to: go.therealestatecpa.com/question The Major League Real Estate podcast is for general information…
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