Investor Tools
S-Corp + Cost Segregation Tax Strategy Calculator
Two levers come up constantly with investors: an S-corp election that cuts self-employment tax, and a cost segregation study that accelerates depreciation on a commercial property. Run both on your own numbers, then take the result to your CPA.
I'm a commercial real estate broker, not a CPA, tax advisor, or attorney. This page is education, not tax or legal advice.
1. S-corporation election
Compares self-employment tax as a sole proprietor or single-member LLC with payroll tax on a reasonable salary.
Uses the 2026 Social Security wage base of $184,500. Ignores the 0.9% Additional Medicare Tax, QBI income limits, state taxes, and health-insurance and retirement effects.
2. Rental depreciation + cost segregation
Estimates year-one depreciation and what a paper loss is worth if it is allowed against your other income.
This is a deferral, not a permanent saving. Sale triggers recapture: up to 37% on the reclassified portion (about $111,000 here if fully recaptured) and up to 25% on building depreciation. A 1031 exchange or holding until death can defer or avoid it. Ignores the excess business loss limit and the passive-loss $25,000 allowance.
S-corp net savings plus rental tax saved, on the inputs above. Treat it as a conversation starter with your CPA, not a forecast. I'm not a CPA or an attorney, and nothing here is tax or legal advice.
What the calculator assumes and leaves out
- • Federal only. Florida has no state income tax, but other states do.
- • Commercial rental losses are generally passive. They offset other income only if you qualify as a real estate professional (750+ hours and more than half your working time in real property trades or businesses) or another exception applies. Otherwise the loss is suspended and carried forward.
- • Depreciation is a deferral. Sale triggers recapture, up to 37% on 5/7/15-year property and up to 25% on building depreciation, unless deferred through a 1031 exchange.
- • An S-corp owner must pay a reasonable salary. A low salary is an audit risk.
- • Not modeled: the 0.9% Additional Medicare Tax, QBI income limits, the excess business loss limit, AMT, state tax, mid-month convention, and cost-study fees. For a fuller cost seg model by asset type, use the Cost Segregation Calculator.
Disclaimer: MaxLife Commercial and Ryan Solberg are real estate professionals, not certified public accountants, tax advisors, or attorneys. This calculator provides estimates for educational purposes only and is not tax, legal, or accounting advice. No CPA-client or attorney-client relationship is created by using it. Tax law changes and depends on your facts. Consult a qualified CPA or tax attorney before acting.
Want the walk-through? Read the S-corp and cost segregation math, explained, or talk to me about a property.
Related Investor Tools
Free institutional-grade calculators from MaxLife Commercial.
NNN Property Value Estimator
Estimate what your triple-net property is worth from tenant, NOI, county, and lease term — then get a broker-reviewed valuation.
Try it →Industrial Property Value Estimator
Estimate what your warehouse, flex, or distribution building is worth from format, county, NOI, and lease term — then get a broker-reviewed valuation.
Try it →Deal Analyzer
Score commercial NNN, multifamily, and SFR deals with IRR, DSCR, cash-on-cash, and equity multiple metrics.
Try it →PDF Deal Analyzer
Drop an OM PDF and Claude extracts the numbers and runs the full underwriting in ~10 seconds.
Try it →