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Multi-Family and Apartment Investing

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Corey Reyment
Pro Member
  • Wholesaler
  • Green Bay, WI
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135
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Cost Segregation Study on a 16 unit and 401K To Reduce Tax

Corey Reyment
Pro Member
  • Wholesaler
  • Green Bay, WI
Posted Oct 11 2018, 20:16

We are in negotiations on a 16 unit. Purchase price will be somewhere around $600K. We primarily wholesale and should end up somewhere around $400K this year of income from our wholesaling business. We met with our accountant and its looking like we will have about $40k-60K tax bill next year. Our wholesaling business is an S Corp and they recommended paying ourselves our salary and putting 17,500 each (husband wife) in to a 401K to help reduce some tax. 

I have recently heard about cost segregation studies and bonus depreciation. Can anyone shed some light on how this would affect our tax situation if we were able to buy it this year and would you put money in to a 401K to reduce taxes or are there other avenues we should look at to reduce tax?

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