Grouping election · 🏠 Lower Taxes w/ Ryan

Grouping election

I have a few real estate syndication investments as a limited partner, and my spouse is a full-time real estate professional (residential rental). I recently heard that we might be able to make a grouping election to combine all our syndication activities so we can take advantage of bonus depreciation and passive loss deductions.

From what I understand, the main concern is that since we’re LPs, grouping could potentially expose us to being treated more like general partners — which we’re okay with. My spouse could also document the time she spends advising or helping with some of these properties.

Has anyone here gone through this grouping election process before?

How to properly make the election for the 2025 tax year?
What kind of documentation is needed in case of an IRS audit (logs, agreements, proof of material participation, etc.)

Thank you!

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