If you prefer to lower your taxable income in that year, put it in the retirement account and use it there.

@Frank Fan, Generally contributions of property into an entity for membership interest do not create a taxable event.  

For a business owner with $100,000 taxable annual income, the net tax savings for using an S Corporation instead of an LLC in taxes paid every year can be as high as $7,500.Holding PropertiesWhen holding properties as a cash flow investor, the LLC (or LP) is generally the better choice because an LLC has more liberal distribution rules.

Not a CPA or tax professional or expert...but in the year in which you purchase the home you should be able to reduce your taxable income by any points that you pay on your mortgage loan...Also, you will be able to reduce taxable income by the amounts that you pay in property taxes as well as interest on your mortgage loan in the current year as well as future years.

Buying your own home will reduce your taxable income(a benefit in the now,) and will give you a more certain understanding of future housing expenses, and may even give you and your family a sense of security, but in order to be a better bet financially vs. renting, you practically need a high level of appreciation.  

You would subtract out all deductible expenses from your total revenues to determine your taxable income.

I was looking to do a cash-out refi to take money out while locking in lower rates, but now that the properties are in the S-Corp, I am unable to transfer back into my name to refi without creating a taxable event.I am wondering if there are any strategies to moving these out in a tax advantaged way (I expect there will be some cost to doing so).Some strategies that have come up in other conversations are:1) Form LLC and issue a note to the S Corp with the properties as collateral... then if S Corp defaults on the note... the properties will be transferred with out triggering taxes (although cost basis would remain the same)2) Have appraiser apply discounted valuations on properties due to lack of marketability (I am only a 50% owner of the S-Corp).  

@Darius Moezinia Refinance right after the completion of a 1031 is perfectly acceptable and is a frequently used strategy when cash is desired by the exchangor who does not want to create a taxable boot situation by taking cash or be seen as inappropriately accessing profit by a refinance immediately before a sale that begins a 1031.

I would want to dig a bit deeper on the rent payment not being taxable income to you.  

The difference between what they sell and buy is viewed as taxable.