Effective tax planning relies on three key pillars.
Tax Mitigation Strategies
Decrease overall tax liability while adhering to legal boundaries.
Tax mitigation strategies encompass a range of legal and ethical approaches to minimize tax obligations. These strategies come in various forms, such as capitalizing on tax deductions and credits, optimizing the tax efficiency of investments and transactions, and leveraging tax planning tools like trusts and partnerships.
Opportunity Zone Funds
Investing in Opportunity Zone Funds provides tax benefits for investing in designated low-income areas. The tax benefits include deferral of capital gains taxes on the sale of an asset, reduction of capital gains taxes on the investment, and elimination of capital gains taxes on the appreciation of the investment if held for at least 10 years.
Charitable Remainder Trusts
Charitable Remainder Trusts allow you to donate appreciated assets to a charity while receiving a stream of income for a specified period. This provides tax benefits in the form of an income tax deduction for the charitable donation and deferral of capital gains taxes on the sale of the appreciated asset.
Grantor Retained Annuity Trusts
Grantor Retained Annuity Trusts allow you to transfer assets to your heirs while minimizing gift and estate taxes. This provides tax benefits in the form of reduced gift and estate taxes and the ability to transfer assets to your heirs at a lower tax cost.
Charitable Lead Annuity Trusts
Charitable Lead Annuity Trusts allow you to donate assets to a charity while reducing your estate tax liability. This provides tax benefits in the form of an income tax deduction for the charitable donation and reduced estate taxes.
Solar Flip Partnerships
Solar Flip Partnerships allow you to invest in solar energy projects while receiving tax benefits. This provides tax benefits in the form of tax credits for investing in renewable energy projects and the ability to offset taxable income with losses from the investment.
Tax Depreciation: Film & T.V. Investments
Maximize your tax savings by investing in qualified film and TV projects under Section 168(k). This allows for 100% bonus depreciation, enabling you to fully write off the investment cost in the year it’s made, thus significantly reducing your tax liability for that year.