The art of tax minimization

Tax minimization is an art form (move over Picasso). It’s not just crunching numbers, it’s the art of crafting personalized tax strategies that paint a bold and vibrant financial picture.

To transform your taxes into a true work of art, you need to select the right blend of creative strategies that will mold and redefine your tax landscape. Just like architects, our tax strategists design and construct personalized structures that are functional and seamlessly integrate into your financial plan.

Brush up on these 5 clever tax strategies:

1. Strategic conversion: Convert taxable accounts into non-taxable accounts, such as a traditional IRA to a Roth IRA, to pay taxes upfront and enjoy tax-free withdrawals in retirement – which is useful if you expect to be in a higher tax bracket in the future.

2. Augusta Rule: Rent your homes for up to 14 days per year without reporting the rental income. If you live near a popular event or tourist destination, you can use the Augusta Rule to generate extra income without a tax burden.

3. Accelerated depreciation: Purchase an investment property and write off the cost of its future depreciation in just one year. This allows you to offset rental income and reduce your taxable income, potentially saving thousands of dollars.

4. Cost Segregation Study: If you are a building owner, identify assets in your building that can be moved to shorter depreciation life categories to take advantage of faster depreciation deductions and reduce tax liability.

5. Required minimum distributions: Use strategies to minimize the amount of RMDs that you must take, such as converting traditional IRAs to Roth IRAs or donating funds to qualified charities. Failing to take the RMD results in tax penalties. RMDs start at age 72 (previously age 70 ½) when your tax-deferred retirement account requires you to withdraw a minimum amount each year.

*Please note these strategies are current as of August 31, 2023 and are subject to change

Talk about painting a bright financial future!

If you have any questions, please don’t hesitate to reach out. We’re here to help you make a masterpiece of your tax plan.