How Three Simple Strategies can Save You Six Figures on Your Tax Bill...(and Why You're Missing Out)

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How Three Simple Strategies can Save Your Six Figures on Your Tax Bill...(and Why You're Missing Out)

It’s likely your biggest single expense,  and could take up 50%+ of your income...

...but if you are like most US-based entrepreneurs, real estate investors, or high-net-worth individuals, you probably have a fatalistic attitude toward your tax bill: it’s a fixed cost you pay a CPA to manage in order to stay out of trouble with the IRS.

The truth is that if you’re looking to maximize your wealth, a few simple strategies can easily guarantee a 6-figure increase in your take home annually.

We’re a team of CPAs with over 50 years of combined professional experience, and we’ve seen far too many Americans miss out on the tax savings opportunities they’re entitled to.

We get it: taxes are confusing, frustrating, and scary. But the number one secret to saving in tax is to be proactive.

So Congratulations.

 If you’re reading this, you’ve already taken the first and most important step!

We're a specialty CPA Firm specializing in Advanced Tax Reduction
  • 50+ Years Experience
  • 200+ Tax Strategy Techniques
  • Average Planning Savings 40k+
  • Results through Tax Law and Strategic Tax Planning Education 

Strategy #1 - Entity Structure

Entity structures can include:
Each entity has different advantages and disadvantages, but being deliberate about your selection is essential 

We recently had a case where a client had a "set-it and forget it" attitude to their entity structure…

...which was wasting over 100k+ in tax annually

Most cases we see haven’t reconsidered their entity structure in years 

By breaking up a single entity into a combo of S-Corp, C-Corp, and Sole-proprietor taxed income we were able to:

  • Take advantage of certain bracket advantages between the entities 
  • Take advantage of deductions only available for certain revenue streams e.g. QBI deduction 
  • Prepare the client for exit planning for a Saas product they are developing
On top of this, by using the correct structures, we are able to save the client 1MM+ in capital gains tax in the future when they go to sell their company

The best part is that most of the savings will be recurring for this case, meaning 100k+ recurring in savings

because we were able to plan well ahead of the sale.

How can you take advantage of your entity structure?

  • Entity structure should be dynamic and reassessed regularly 
  • Entity structure impacts how you are taxed both when operating and exiting 
  • Often easiest is not the best, and administrative hassle is worth significant tax savings 
  • Don’t listen to simplistic answers like “You should have an LLC” or “You should have an S-Corp”
Often we find that by readdressing the entity structure, savings are usually a wide percentage change that can be locked in for several years

Strategy #2 - Shifting Techniques

Income shifting is a series of techniques that take advantage of:
  • Different tax brackets
  • Different years (timing techniques)
  • Deferring taxes to future years

Income Shifting involves techniques that take advantage of different tax brackets, optimal timing, and deferring taxes to future years.

Common income shifting techniques:

  • Hiring family members in lower tax brackets 
  • Accelerating deductions such as depreciation 
  • Deferring tax through specialty transactions like 1031 exchanges or retirement plans 
Recently, we accelerated depreciation on a company-owned building which will save 115K in tax

In contrast, we had another recent case where a real estate investor failed to execute a 1031 exchange on a deal which left him with a 200k+ tax bill that could have easily been deferred….

 How can you take advantage of Shifting Techniques?

  • Income shifting can happen by timing transactions, or by moving taxable income to lower brackets of family members or other entities
  • Certain deferral techniques are available, but need to be executed before transactions 

Strategy #3 - Tax Credits & Incentives

The 3rd and most overlooked strategy involves tax credits and incentives
  • Payroll credits
  • Research & Development Credits
  • Energy Credits
  • ​One-time incentives

Too often entrepreneurs and investors do not realize that they are missing out on a variety of credits and incentives…

Recently we saw a case of a client developing a digital product who didn't know they were eligible for over 35k in recurring R&D Credits 

Next year it will likely be over 100k in R&D Credits as the activity picks up

In another recent case, we uncovered retroactive payroll credits from Covid provisions that will amount to over 130k in one time tax incentives …

...that their previous accountant just brushed them off about pursuing

As you can see, these techniques are powerful, and when combined can yield over 6-figures in tax savings which translates into:

  • Earlier Retirement
  • ​Smoothing Cashflow Bottlenecks
  • Expanded Business Growth
  • Cash Flow for You to Use to Support your Goals and Desires
  • ​Fewer Voluntary Contributions to the US Treasury
How Can You Implement These Techniques?
You have 3 Options:
#1 Research and attempt to implement tax-saving strategies on your own, unsure if you're doing everything right in a way that won’t increase audit risk. This requires a lot of time to learn how to apply and execute.

Typically we find that people make serious errors when they DIY their tax planning, but often the amount of time and effort they expend is an even greater cost.

An obviously better option is to:

#2 Pester your CPA about implementing strategies, waiting through long email exchanges as they drag their feet. If you've already tried this and know how tough it is to break through to them, there's a third option.

#3 Switch to a specialty tax-planning firm dedicated to maximizing tax savings and offering personalized service for a select number of clients.
This way when you're wondering about:

Do I have the right entity structure?

Should I be hiring my kids?

Does a 1031 really make sense for this deal?

Could we get an R&D Credit for this new product we’re developing?

You aren’t going to Google to figure that out.

Or calling your CPA who bills you for the 15 minute phone call where you didn’t get an answer.

That you have a strategy when it comes to your taxes.

Someone who understands your goals and your operations, and aligns your tax strategy to support that.

So you can do the things that mean more to you:

Like retiring early

Or leveling up your business so you can spend more time with your family

And know that you’re not increasing your audit risk

This is the specialty focus we’ve spent years developing.

And you have every right to tax plan. 

According to a landmark federal court decision: 

"Anyone may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury." 

So being smart about reducing your tax burden is completely within your rights, and when they take up 20-50%+ of your income, it's one of the most impactful things you can focus on. 

That's why working with the right tax professional is so important. 
What Our Clients Save...
Beyond the savings, planning for taxes is really planning for life. 

When they eat up 20-50% of your income, the relationship you have to them is important. 

So the relationship you have with your tax professional is really the key difference.

We start each relationship with a no-pressure call to assess your situation and to give you feedback on where you could improve your current strategy. 

That doesn't always include working with us. 

(actually is probably won't)

It's a second look at your situation, even if you already have a good relationship with your tax professional.

We'll talk about your goals, situation, and strategy so we can come up with a plan. 

Often we can confirm your professional is taking advantage of what's available to you.

The reason for this is that we run our practice a little differently...

Our fees are 100% quoted up front and flat so you know the ROI and can budget for us. 

In reality, you're budgeting for a profit center, since we only work with clients who will get paid to work with us through the tax savings we achieve together.
Who This Is For:
  • US Based Business Owners - with more than 500k in profit selling products or services in a closely held businessBONUS #1: The 4 Vertical Jump Killers ($17.00 Value)
  • Online Entrepreneurs - doing 50k+ profit months with services like consulting, coaching, or marketing
  • Real Estate Investors - with multiple properties, looking to shield >200k+ in capital gains
  • HNW Individuals - with multiple income streams looking to plan for their legacy
More Specifically:
  • The Individual who wants their tax planning to produce an ROI
  • The Individual who is growing in their enterprises and looking for a true partner in dealing with their biggest expense
  • The Individual who is not interested in "DIY" and appreciates focusing on their best and highest use
If that sounds like you,
then use our contact form below to get in touch.
We cover some basic questions on the form so we can assess if we're the right fit for each other so as not to waste your time.

We see the successes we provide as coming from relationships....

Our call is meant to assess our mutual fit to ensure a fruitful long term relationship.

We look forward to meeting you soon.
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