What Happens When an Investor Dies, Sells, or Gets Bought Out? Understanding Section 754 Elections

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 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.