401K and DB plan reduce income tax through cost segregation

[Alex Sanchez]

Before exploring this concept with a qualified legal and tax professional, I wonder if any of the community has anecdotal experience around taking a distribution from a 401K and balancing the earned income taxes with paper losses from doing a cost segregation study. I haven't been able to find much information around this topic so I admittedly may be searching for a unicorn.

My scenario: I have a (2-4) unit multifamily for 4M. My goal to purchase and hold for the long term, so I think a cost seg might make sense. I'm considering a 401K distribution about 500k.

If the cost segregation shows $800K of paper loss/bonus depreciation, etc., can I balance this loss against earned income of $500K from a 401K distribution? I realize there will an unavoidable 10% penalty to take out the 401K, but I'm curious about the potential income tax avoidance.

I won't take any comments here as legal or tax advice.