Strategies to Reduce Taxes

2,822 Views | 25 Replies | Last: 1 day ago by Ag CPA
plowe32
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:07a, 7/20/25
AG
Legally. This isn't about giving legal or tax advice. I simply want to hear your strategies or ones you want to investigate. We are adults who should call our own CPA and tax lawyers to see what's advisable and allowed.

I'll go first with two I've implemented over the years. S-Corp election and Cost Segregation Studies when holding longer term.
Reply Quote
1
fulshearAg96
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:13a, 7/20/25
AG
make less money
Reply Quote
13
ValleyRatAg
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
10:49a, 7/20/25
AG
Work under someone else's SS number
Reply Quote
6
BenTheGoodAg
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
11:05a, 7/20/25
AG
I have used deduction bunching for years.

Basically alternating between the standard deduction and Itemizing every other year by paying property taxes every other tax year (Jan 1& Dec 31 within same calendar year) and focused charitable giving in those same periods.

Not as effective during the $10k SALT cap and higher standard deduction period, but the new SALT cap of $40k will help.
Reply Quote
2
JohnClark929
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
11:18a, 7/20/25
Reply Quote
1 edit
Holistic Planning
User Profile
Private Message
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:52p, 7/20/25
Sponsor
Donor Advised Fund
Gifting highly appreciated stocks or other assets in one year. Then you can potentially use it to offset the taxes from a Roth conversion if applicable.
www.holisticplanning.com/intro
Remarkably personal financial advice for a fuller life.
Reply Quote
1
LOYAL AG
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to ValleyRatAg • 5:13p, 7/20/25
AG
ValleyRatAg said:
Work under someone else's SS number


Username checks out!
Reply Quote
8
topher06
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Holistic Planning • 12:16p, 7/25/25
Holistic Planning said:
Donor Advised Fund
Gifting highly appreciated stocks or other assets in one year. Then you can potentially use it to offset the taxes from a Roth conversion if applicable.

This is probably going to be underappreciated, but is a very good answer for high level (but not necessarily ultra-high wealth) individuals, particularly if associated with a monetization event. Very underused tool, and not hard to use.

Source: I work oil and gas law and have no ability or formal knowledge to advise on this, but I care about my personal taxes.
Reply Quote
1
2 edits
YouBet
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
9:30a, 7/26/25
AG
I learned about this on here but apparently if you are 65+ you can stop paying property taxes all together. You take a 5% annual penalty that accrues on what you owe and when you die the state takes what you accrued in penalties over the years from your home equity/estate.

If you don't care about leaving your house to kids or family, then this seems like something to investigate. I'm sure there are other qualifications to be met besides your age, but I was shocked to learn about this.
Reply Quote
3
halfastros81
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 11:18a, 8/8/25
AG
Never heard of that one. That's interesting . Thanks for mentioning.
Reply Quote
Diggity
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to YouBet • 12:46p, 8/8/25
AG
seems like it might make more sense to "borrow" that money from whoever is in line to inherit. Obviously not everyone would be in a position to do that, but would be much better for folks down the line.

a 5% vig for an extended period of time could get expensive pretty quickly.
Reply Quote
YouBet
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to Diggity • 1:20p, 8/8/25
AG
Yeah, would be a timing thing you would have to try and predict. How long before that 5% starts eating into other money? That sort of thing.

Still, could work well for the right situation.
Reply Quote
infinity ag
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:21p, 8/8/25
You have "tax lawyers". Wow.
Reply Quote
plowe32
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to infinity ag • 2:18p, 8/8/25
AG
Not me! I know some on the B&I board do, however.
Reply Quote
techno-ag
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
12:57p, 8/9/25
AG
Use a SEP IRA to divert some earnings. Helpful to stay out of a higher tax bracket. You'll owe taxes on the distributions after retirement though, unlike with a ROTH IRA.
Pro College Station Convention Center
Reply Quote
bagger05
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:13p, 8/9/25
AG
Real estate professional plus cost segregation studies and accelerated depreciation.
Reply Quote
1
knoxtom
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
2:44p, 8/10/25
There are very few ways to decrease taxes anymore, unless you are rich.

For the poor, there are none.

For the middle class they almost all involve depreciation. you can purchase commercial real estate or develop in disadvantaged economic zones. Massive front loaded depreciation. Also, you can really take advantage of Section 179 for business property.

Some other ideas...

The property refinance game. As your prop holdings increase in value refi and take the cash out instead. Since it is a loan you don't pay taxes on it. Please don't do this on your primary residence. There are a million videos about how to do this.

You can use Roth rules and creatively use real estate investments within the Roth (example - since a sporting ticket is technically a super short term real estate lease, you can probably buy and resale tickets using Roth funds and keep profits within the roth tax free - this is a little scary and if it is legal, it won't be much longer)

You can tailor your comp so that it is bonus instead of salary. By doing this you can maybe get around self employment taxes since those are tied to salary. I see a lot of accountants bring this up but I don't do it as I think you are asking for trouble.


For the rich it is all easy... since of course the rich wrote the rules. When you are rich just don't take any salary. All comp should be in the form of stock and options, which aren't taxed until sold. Just let them stack up and take loans against them with the stock as collateral. Loan proceeds aren't income so you declare nothing, you live like a king. I am not sure that there is anyone in America making more than 5 mm a year who pays a cent in taxes because they pretty much all do it this way. Elon just got a 29bn package with a taxable amount equal to $0. Not a penny in taxable income from 29bn. All options and stock.
Reply Quote
4
techno-ag
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to knoxtom • 2:48p, 8/10/25
AG
knoxtom said:
There are very few ways to decrease taxes anymore, unless you are rich.

For the poor, there are none.

For the middle class they almost all involve depreciation. you can purchase commercial real estate or develop in disadvantaged economic zones. Massive front loaded depreciation. Also, you can really take advantage of Section 179 for business property.

Some other ideas...

The property refinance game. As your prop holdings increase in value refi and take the cash out instead. Since it is a loan you don't pay taxes on it. Please don't do this on your primary residence. There are a million videos about how to do this.

You can use Roth rules and creatively use real estate investments within the Roth (example - since a sporting ticket is technically a super short term real estate lease, you can probably buy and resale tickets using Roth funds and keep profits within the roth tax free - this is a little scary and if it is legal, it won't be much longer)

You can tailor your comp so that it is bonus instead of salary. By doing this you can maybe get around self employment taxes since those are tied to salary. I see a lot of accountants bring this up but I don't do it as I think you are asking for trouble.


For the rich it is all easy... since of course the rich wrote the rules. When you are rich just don't take any salary. All comp should be in the form of stock and options, which aren't taxed until sold. Just let them stack up and take loans against them with the stock as collateral. Loan proceeds aren't income so you declare nothing, you live like a king. I am not sure that there is anyone in America making more than 5 mm a year who pays a cent in taxes because they pretty much all do it this way. Elon just got a 29bn package with a taxable amount equal to $0. Not a penny in taxable income from 29bn. All options and stock.
You still got to pay the loan back, though.
Pro College Station Convention Center
Reply Quote
2
knoxtom
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to techno-ag • 10:39p, 8/10/25
techno-ag said:
knoxtom said:
There are very few ways to decrease taxes anymore, unless you are rich.

For the poor, there are none.

For the middle class they almost all involve depreciation. you can purchase commercial real estate or develop in disadvantaged economic zones. Massive front loaded depreciation. Also, you can really take advantage of Section 179 for business property.

Some other ideas...

The property refinance game. As your prop holdings increase in value refi and take the cash out instead. Since it is a loan you don't pay taxes on it. Please don't do this on your primary residence. There are a million videos about how to do this.

You can use Roth rules and creatively use real estate investments within the Roth (example - since a sporting ticket is technically a super short term real estate lease, you can probably buy and resale tickets using Roth funds and keep profits within the roth tax free - this is a little scary and if it is legal, it won't be much longer)

You can tailor your comp so that it is bonus instead of salary. By doing this you can maybe get around self employment taxes since those are tied to salary. I see a lot of accountants bring this up but I don't do it as I think you are asking for trouble.


For the rich it is all easy... since of course the rich wrote the rules. When you are rich just don't take any salary. All comp should be in the form of stock and options, which aren't taxed until sold. Just let them stack up and take loans against them with the stock as collateral. Loan proceeds aren't income so you declare nothing, you live like a king. I am not sure that there is anyone in America making more than 5 mm a year who pays a cent in taxes because they pretty much all do it this way. Elon just got a 29bn package with a taxable amount equal to $0. Not a penny in taxable income from 29bn. All options and stock.

You still got to pay the loan back, though.

Not really.

You just forfeit the stock that you are using as collateral. Since you know the bankers and this is an ongoing relationship and repeated every year they are fine with it.
Reply Quote
3
OldArmyCT
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
4:52a, 8/11/25
AG
Get 100% VA disability, geto 100% reduction in your property taxes.
Lesser percentage, lesser reduction.
Reply Quote
1
techno-ag
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to knoxtom • 7:59a, 8/11/25
AG
knoxtom said:
techno-ag said:
knoxtom said:
There are very few ways to decrease taxes anymore, unless you are rich.

For the poor, there are none.

For the middle class they almost all involve depreciation. you can purchase commercial real estate or develop in disadvantaged economic zones. Massive front loaded depreciation. Also, you can really take advantage of Section 179 for business property.

Some other ideas...

The property refinance game. As your prop holdings increase in value refi and take the cash out instead. Since it is a loan you don't pay taxes on it. Please don't do this on your primary residence. There are a million videos about how to do this.

You can use Roth rules and creatively use real estate investments within the Roth (example - since a sporting ticket is technically a super short term real estate lease, you can probably buy and resale tickets using Roth funds and keep profits within the roth tax free - this is a little scary and if it is legal, it won't be much longer)

You can tailor your comp so that it is bonus instead of salary. By doing this you can maybe get around self employment taxes since those are tied to salary. I see a lot of accountants bring this up but I don't do it as I think you are asking for trouble.


For the rich it is all easy... since of course the rich wrote the rules. When you are rich just don't take any salary. All comp should be in the form of stock and options, which aren't taxed until sold. Just let them stack up and take loans against them with the stock as collateral. Loan proceeds aren't income so you declare nothing, you live like a king. I am not sure that there is anyone in America making more than 5 mm a year who pays a cent in taxes because they pretty much all do it this way. Elon just got a 29bn package with a taxable amount equal to $0. Not a penny in taxable income from 29bn. All options and stock.

You still got to pay the loan back, though.

Not really.

You just forfeit the stock that you are using as collateral. Since you know the bankers and this is an ongoing relationship and repeated every year they are fine with it.

You could do something similar with a margin loan I suppose. Max out your credit then let the brokerage sell on a dip to cover the loan.

But either way you're still losing future gains. This is not an infinite money glitch.
Pro College Station Convention Center
Reply Quote
2
1 edit
SquareOne07
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
11:56a, 8/11/25
AG
The amount of taxes you pay or the amount of taxes the dollars you earn are subject to?

Nuanced difference…
Reply Quote
JobSecurity
User Profile
Private Message
Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to knoxtom • 1:21p, 8/11/25
AG
Do you not have to pay tax on the liquidated shares to pay back the loan?
Reply Quote
1
Stive
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to JobSecurity • 1:46p, 8/11/25
AG
JobSecurity said:
Do you not have to pay tax on the liquidated shares to pay back the loan?

Depends on when they're sold.

Before death? Probably...but at capital gains rates.

After death? Probably not...unless they change step up in basis rules.
Reply Quote
PDEMDHC
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
1:55p, 8/11/25
AG
I throw away a banana and then take a buck from the cash register.
Reply Quote
2
Ag CPA
User Profile Ignore User Stop Ignoring
How long do you want to ignore this user?
24 hours One week Permanently Cancel
In reply to BenTheGoodAg • 2:35p, 8/11/25
AG
BenTheGoodAg said:
I have used deduction bunching for years.

Basically alternating between the standard deduction and Itemizing every other year by paying property taxes every other tax year (Jan 1& Dec 31 within same calendar year) and focused charitable giving in those same periods.

Not as effective during the $10k SALT cap and higher standard deduction period, but the new SALT cap of $40k will help.

For most of us without a business or some other means to shelter taxes this is probably the easiest way to get some meaningful deductions every other year if you own a home, especially with SALT going to $40K as mentioned.
Reply Quote
1
Refresh
Page 1 of 1
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.