★★★★★

Chemical Engineer Saves $67,000 with Consulting and Real Estate Strategy

Daniel
Houston, TX • High-Income Professional
Tax Savings
$67,000
Strategy Used
S-Corp for Consulting, STR Strategy, W-2 and Business Income Coordination
Rating
5 / 5 Stars

I am a chemical engineer at a major energy company and run a growing consulting practice on the side. Between my W-2 salary and consulting income, I was in a high tax bracket with no real strategy. My old CPA just combined everything and calculated what I owed.

AE Tax Advisors took a completely different approach. They structured my consulting practice as an S-Corp, optimizing the salary-distribution split to minimize self-employment tax. Then they helped me invest in a short-term rental property and structured it to take advantage of the STR loophole.

Here is where it got powerful: because I materially participate in managing the STR (I handle pricing, guest communication, and maintenance coordination), the depreciation losses from the cost segregation study are non-passive. Those losses offset my combined W-2 and consulting income, dramatically reducing my total tax bill.

AE Tax coordinated everything -- the consulting entity, the rental property, the cost seg study, and my W-2 withholding -- into one integrated plan. They made sure the numbers worked together rather than being handled in isolation.

Total savings: $67,000. What felt impossibly complex before AE Tax got involved became a clear, actionable plan with defined steps and projected outcomes. They even created a quarterly check-in schedule to make adjustments throughout the year as my income from consulting fluctuated.

For any engineer or technical professional with side consulting income, the combination of S-Corp structure and real estate strategy is powerful. AE Tax Advisors made the entire process feel manageable and produced results that speak for themselves.

Published: 2026-08-25 By AE Tax Advisors Team

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