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.

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.

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.

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.

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.

Never heard of that one. That's interesting . Thanks for mentioning.

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.

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.

You have "tax lawyers". Wow.

Not me! I know some on the B&I board do, however.

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.