Tax reductions when buying real estate via S-corp.
Is there a legal way to use S-Corp pre-taxed income to acquire more real-estate?
I have an S-Corp (construction company) that is providing a main source of steady income. A couple years back I was able to acquire a commercial property for the business. This was setup under a separate LLC. Now days the business has fairly low debt. I am debt free in my personal life.
Having increased cash has me pondering on more ways to invest but also how to reduce tax liability.
Other thing's I have considered but not fully researched are:
Invest pre-tax S-corp income into the stock market (EFT/REI's).
Acquire more commercial property directly through the S-corp.
Most Popular Reply
While self-directed IRAs and Solo 401ks can be great tax-advantaged tools for real estate and other investments, your IRA or 401k could not rent space to your business. This would violate the prohibited transaction rules. Renting space to a business owned by a non-disqualified person would be allowed, however.