David
Management Consultant + 3 STRs · Miami, FL · Age 41
SingleIncome: $590KSmall BusinessReal Estate
“I was leaving $80K on the table every year and had no idea.”
The Situation
$410K consulting income (S-corp)
3 short-term rentals ($180K net rental income)
Spends 1,000+ hours managing properties
Strategies Identified
1. Cost Seg on 3 Properties
IRC §168(k)
$38,400
Cost seg studies on all 3 STRs. Combined $1.4M in accelerated depreciation.
2. Solo 401(k) + Cash Balance Plan
IRC §401(k), §401(a)(2)
$24,800
Max Solo 401(k) ($69K) + add cash balance plan for another $80K shelter.
3. S-Corp Wage Optimization
IRC §1402
$11,200
Set reasonable comp at $150K on $350K profit. Save 15.3% SE tax on $200K.
4. Vehicle Deduction (Section 179)
IRC §179
$7,200
New Tahoe for property management. Over 6,000 lbs GVWR, $28,900 first-year deduction.
Tax Impact
Before
$195,000
→
After
$113,400
Annual Savings
$81,600
42% reduction
Action Steps
1
Order cost seg studies on all 3 STR properties
2
Open Solo 401(k) + cash balance plan before Dec 31
3
Review S-corp reasonable comp analysis with CPA
4
Document business mileage for Tahoe from day one
What could you save?
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