CPA to help with Advanced Self Directed 401k Strategy

[Frank Z.]

My business partner and I are both W2 employees for large companies with good salaries. We've been in construction / renovations as a side hustle going on two years now and we are looking to do something like this:

Start a holding LLC. We plan to buy properties in this holding company that are in need of repairs and then aggressively use accelerated depreciation to create deductions early on to offset as much W2 income as possible.

A second LLC partnership as a management company. Ideally I would like to use this company to pay salaries to my partner and I in a way that would benefit from the 20% pass through deduction. A Solo-k would be started for this company and enough properties would be managed (over time) by this entity in order to max out the Solo-K contributions for myself and my partner (up to 55k/yr/each).

The Solo-Ks would use the 55k of yearly tax deferred contributions to buy more rentals using 20% down-payments (or as little as the bank will let me put down without going below 20%, don't want to pay PMI) and would be exempt from UDFI taxes. This would allow for all rent and appreciation of the properties to be 100% tax deferred.

Is all of this possible? I have concerns about minimum alternative tax and soooo many follow up questions. I'm hoping I find a CPA who is comfortable enough with this landscape to either guiding me along this path or help course correct and keep me out of trouble with the IRS, lol. 

Any advice or CPA recommendations are greatly appreciated!

[Mitch Messer]

Hey @Frank Z.. First, I used to live in Smyrna, so we probably should connect at some point!

Second, because you're here in Georgia, if you're planning to engage in any sophisticated self-directed retirement account efforts, you've got to get to know Dyches Boddiford and Pete Fortunato. They will both be together in Atlanta in March talking about topics just like these.

Not to go all fanboy here, but let's just say that all the wisdom and resources you'd ever want will be in that room. For instance, the CPA that we use and recommend to this day was recommended to us by Dyches some 20 years ago.

Connect with me here on BP and I'll give you all the details!

For the record, I get not one dime from recommending Dyches or his events. But you can bet I'll be seated right up front at his two-day in March!