23 Overlooked Tax Strategie for Entrepreneurs to Create Tax Freedom

  1. Get a second opinion on your taxes at least every three years.

  2. Contribute to the most appropriate retirement plan (SEP IRA, 401k, DB Plan, etc.).

  3. Strategically use “backdoor” Roth conversions.

  4. Open Self-Directed IRA LLCs.

  5. Own income producing real estate.

  6. Use cost segregation studies to recoup down payments on real estate acquisitions.

  7. Use tax free exchanges (Section 1031 and 1035).

  8. Use the tax protected status of life insurance as part of an overall financial plan.

  9. Have a bank pay life insurance premiums, i.e. premium financing.

  10. Use a Donor Advised Fund to make charitable contributions.

  11. Create multiple entities to segregate income streams and/or assets.

  12. Shift income to lower tax jurisdictions.

  13. Participate in a captive insurance company.

  14. Your spouse is a passive owner in your company.

  15. Deduct 100% of medical expenses using a Section 105 plan.

  16. Take advantage of bonus depreciation and Section 179 accelerated depreciation.

  17. Optimize your Section 199A deduction.

  18. Shift income to lower rate taxpayers you already support financially.

  19. Hire children as employees.

  20. Have children save their earnings in a Roth IRA or Roth designated 401k account.

  21. Switch from accrual to cash basis tax reporting.

  22. Use gift-leaseback strategies.

  23. Research and apply all applicable tax credits (R&D, 179, Work Opportunity, etc.).

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