Tax Reduction Strategies

Tax planning often becomes urgent during moments of change. A business sale, equity compensation event, large bonus, or real estate transaction can concentrate income into a single year. When that happens, taxes stop being theoretical and start limiting future options.

We work with local and national attorneys, accountants, and tax specialists to evaluate tax reduction strategies that are established and defensible. The objective is not maximum tax avoidance. Instead, we focus on reducing avoidable tax exposure while preserving flexibility and minimizing future risk.

When Taxes Become a Timing Problem

Many clients own long-held investment real estate and consider selling after significant appreciation. In practice, capital gains tax and depreciation recapture often shape the outcome more than the sale price itself. A poorly timed sale can compress taxes into one year and permanently reduce investable capital.

As a result, decisions made under market pressure can limit income planning, reinvestment choices, and estate strategies later on.

Trust-Based Strategies and Real Tradeoffs

In certain cases, we evaluate trust-based planning strategies designed to spread tax liability over time. These structures can create a defined income stream and allow remaining assets to benefit future generations. They may also provide a degree of asset protection.

However, these strategies introduce real constraints. Assets are committed to a legal structure. Liquidity is reduced. The strategy depends on timing, asset type, and income needs aligning correctly. When those factors are off, the costs can outweigh the benefits.

We have seen these strategies fail when they are implemented too late or sized incorrectly. Problems also arise when tax planning is treated as a stand-alone move. Our role is to assess whether a strategy fits within the broader planning context before a transaction locks the outcome in place.