They lower taxable income for federal taxes but not for FICA.However, employer contributions made by the S-Corp are not subject to FICA and count as a business expense.Make sure your W-2 correctly reports wages, deferrals, and FICA wages.

Depreciation lowers taxable income now but is subject to recapture at a maximum 25% rate when the property is sold.

Obviously you want to lower expenses while maximizing revenue. 

Hi @Elias Halvorson,Both markets offer lower costs of entry and opportunities for cash flow.

There are significant advantages to investing here (lower barrier to entry, much better price to rent ratio's, etc. etc.).

Risk entails everything from lawsuits to lack of diversity in investments to low rates of return to high exposure to vacancy (more units theoretically lowers vacancy exposure).

Sales Tax Breaks: Construction materials and services may be subject to lower tribal sales taxes—or exempt altogether.4.

The only other option would be to get a coborrower to bring the down payment or get seller financing with a lower down payment. 

Maybe I got lucky because this was a few years ago and with lower prices and lower interest rates, it was easier to do well. 

Would that lower our tax liability from other income we receive or no because this is purely RE and not an operating business?