Advanced Tax Planning
Advanced Tax Planning
Business Deductions
- § 162: Ordinary and necessary business expenses.
- § 831(b):
A business owner purchases new insurance policies to protect against underinsured or uninsured risks. The risk is re-insured with (premiums transferred to) the client’s new private re-insurance company that makes an 831(b) election. The premiums paid are tax deductible and the money earned in their re-insurance company is taxed at qualified dividends (or offset with an S.O.P. or MDCD)
Target:
-$700k+ of Business Gross Revenue
-$100k+ Annual Paid Premium Contribution
Business Ownership with Tax Benefits
Building or buying a business with tax benefits. For example, buying into solar or opportunity zone funds, investing in oil or gas or similar strategic ownership programs in order to accelerate the depreciation or take advantage of the accelerated expenses.
Target:
-$800k+ in ordinary income-$1M+ in capital gains income
-High Income, Large Liquidity Events (Sale of Business, Property Sale, Asset Sale, Qualified Retirement plan distribution)-~$100k minimum capital contribution
Volume Discount Charitable Donations
Clients participate in a charitable donation that uses the actual cash value of an asset that was purchased with a volume discount. For example, a piece of real estate purchased with a volume discount can be donated at the current market value, and results in a multiplier effect of the purchase vs donation (ie 1:5 meaning the land was purchased for $1 and donated with a value of $5). The multiplier effect results in a charitable donation at 1:5 times the amount of capital outlay. ($20k purchase would provide a $100k charitable donation) There are multiple charitable donation programs that are available. Maximum Deduction is 30% of adjusted gross income.
Target:
-$300k+ of Taxable Income, Business Income, Capital Gains or W2 income
Strategic Loss Offsets & Alternative Incentives
Certain private offerings provide clients with access to highly structured, IRS-compliant strategies designed to offset current or prior-year tax liability. These programs leverage existing tax code and institutional partnerships to create efficient outcomes—especially for high-income earners and those with large one-time tax events.
Target:
$300K+ in tax liability
- Available to individuals, business owners, or investors with eligible income or gains
- Often applicable to amended returns or future-year planning
