Tax Reduction Strategies

Tax reduction is an important part of financial planning. After all, what you make isn't nearly as important as what you keep.

Our clients spend much of their time accumulating wealth. One of our core tenets is helping our clients ensure that they maximize how much of that wealth goes to them (or their heirs) instead of the government. Nobody wants to pay more in taxes than they have to.

In our planning, we take advantage of advanced strategies to minimize and in some cases negate taxes. We look at reducing income taxes, capital gains taxes, AMT (alternative minimum tax), and estate taxes.

You may already be taking advantage of accounts that are tax-deferred and tax-advantaged. When we make investment recommendations, we go beyond tax-deferred and tax-advantaged. We manage our clients' money different for accounts that are qualified and non-qualified accounts, utilizing strategies such as tax-efficient mutual funds, municipal bonds, and tax-loss harvesting.

The tax code allows for one popular strategy for reducing taxes on investment properties known as 1031 exchanges. Under a 1031 exchange, one investment property is sold and another like-kind property is purchased and the capital gain taxes are deferred.*

Another tax reduction strategy would be a 1035 exchange, which allows a person to transfer the cash value of one life insurance policy or an annuity without incurring any taxes. There are various reasons why a person would want to transfer the accumulated funds of an insurance policy or annuity, but it is important that certain restrictions must be met.

Additionally, there are alternative investment strategies that are designed to reduce income taxes in the year of purchase, which we analyze and incorporate when it's a good fit for our clients' situation and objectives.

Reducing estate taxes is one of the main objectives of our advanced estate planning.

*Not suitable for all investors. Please refer to the offering memorandum for complete information including fees and expenses and any risks associated with this type of investment.