Your Complete Tax Strategy Library
This is your go-to reference for legitimate, IRS-approved tax strategies. Whether you're an individual taxpayer, business owner, or working with a CPA, you'll find actionable strategies that can save you thousands—sometimes hundreds of thousands—in taxes.
What's included:
- 33 strategies for individuals and families
- 41 strategies for businesses
- Industry-specific applications
- Real savings estimates for each strategy
- Links to detailed implementation guides
Updated for the One Big Beautiful Bill Act (passed July 4, 2025):
- Permanent 100% bonus depreciation
- Enhanced $2.5M Section 179 limit
- Permanent 20% QBI deduction
- New energy credits
Author’s note (Sam Young, EA): This is the playbook I use with founders and owners—strategy stacks here are prioritized by cash impact we’ve actually measured in the first year.
Tax Planning Basics: Start Here
Understanding Tax Deductions vs. Tax Credits
Tax Deduction = Reduces your taxable income
- Example: $10,000 deduction in the 30% tax bracket saves you $3,000
Tax Credit = Reduces your tax bill dollar-for-dollar
- Example: $10,000 credit saves you $10,000
Bottom line: Credits are more valuable than deductions.
The 4 Core Tax Strategies (The "4 Ds")
Every tax strategy falls into one of these categories:
1. DEDUCT - Subtract expenses from your income
- Example: Business deductions reduce your taxable income
2. DEFER - Pay taxes later instead of now
- Example: 401(k) contributions—money grows tax-deferred
3. DIVIDE - Split income among people/entities in lower brackets
- Example: Gift assets to family members in lower tax brackets
4. DISGUISE (Convert) - Change how income is taxed
- Example: Convert ordinary income to capital gains (taxed at lower rates)
Quick Guide: Choosing Your Business Structure
| Structure | Tax Rate | Best For |
|---|---|---|
| Pass-Through (LLC, S-Corp, Partnership) | Your personal rate (minus 20% QBI deduction) | Most small businesses |
| C Corporation | 21% flat rate | Raising capital, planning IPO, or selling for $10M+ |
| S Corporation | Personal rate + W-2 wages required | Avoiding self-employment tax |
Part I: Individual & Family Strategies
(For full details on each strategy, see our Individual & Family Tax Planning Guide)
Retirement & Wealth Building (Strategies 1-8)
| Strategy | Potential Savings | Who It's For |
|---|---|---|
| 1. Mega Backdoor Roth | $5K-$50K+/year | High earners with 401(k) after-tax option |
| 2. Backdoor Roth IRA | $50K-$150K lifetime | High earners above Roth IRA limits |
| 3. Roth Conversion Ladder | $10K-$250K+ lifetime | Retirees in low-income years |
| 4. Withdrawal Sequencing | $5K-$100K+ lifetime | Anyone with multiple account types |
| 5. NQDC Optimization | $5K-$40K/year | Executives with deferred comp |
| 6. QCDs (Age 70½+) | $1K-$12K/year | Retirees with RMDs who give to charity |
| 7. Catch-Up Contributions | $1K-$5K/year | Anyone 50+ |
| 8. HSA as "Stealth IRA" | $500-$2K/year | Anyone with HSA-eligible plan |
Estate Planning & Wealth Transfer (Strategies 9-24)
| Strategy | Potential Savings | Best For |
|---|---|---|
| 9. GRAT (Grantor Retained Annuity Trust) | $30K-$100K+ per trust | Transferring appreciating assets to heirs |
| 10. IDGT (Intentionally Defective Grantor Trust) | $50K-$250K+ | "Freezing" estate value while paying tax |
| 11. SLAT (Spousal Lifetime Access Trust) | $100K-$500K+ | Using gift exemption with indirect access |
| 12. 529 to Roth IRA Rollover | $2K-$7K/year | Leftover college savings (new in 2024!) |
| 13. Annual Exclusion Gifting | $1K-$40K/year | Giving $19K/person ($38K married) tax-free |
| 14. Family Limited Partnership (FLP) | $50K-$200K | Transferring with valuation discounts |
| 15. QPRT (Qualified Personal Residence Trust) | $50K-$300K+ | Transferring home while living in it |
| 16-24. Advanced Trusts | Varies | GST Trust, CRT, CLT, ILIT, Dynasty, SNT, etc. |
Key estate planning strategies:
- Direct tuition/medical payments: Unlimited, no gift tax
- Charitable trusts: Income + deduction + avoid capital gains
- Life insurance trusts: Remove policies from estate
- Generation-skipping: Bypass estate tax for multiple generations
Family & Homeowner Strategies (Strategies 25-33)
| Strategy | Potential Savings | What It Is |
|---|---|---|
| 25. Home Sale Exclusion | $15K-$150K+ | Exclude $250K/$500K of home sale gains |
| 26. STR Loophole | $50K-$100K+/year | Short-term rental losses offset W-2 income |
| 27. Child Tax Credit | $500-$5K | Up to $2,200 per child under 17 |
| 28. Child IRAs | $2.1K-$7K/year | Kids with earned income can save for retirement |
| 29. Clean Energy Credit | $2K-$20K | 30% credit on solar, wind, batteries |
| 30. 1031 Exchange | $25K-$150K | Defer capital gains on investment property |
| 31. Real Estate Professional Status | $10K-$100K+/year | Unlimited rental loss deductions |
| 32. Tax Loss Harvesting | $2K-$20K/year | Sell losers to offset gains |
| 33. Opportunity Zones | $20K-$200K+ | Defer/reduce gains via economically distressed zones |
Charitable Giving (Quick Reference)
| Strategy | Benefit |
|---|---|
| Conservation Easements | Donate development rights, huge deduction |
| Donor-Advised Funds | Immediate deduction, give over time |
| Charitable Remainder Trust | Income now + deduction + avoid capital gains |
| QCDs (Age 70½+) | IRA→charity, satisfies RMDs tax-free |
Part II: Business Tax Strategies
(For full details, see our Business Tax Planning Guide)
Entity & Compensation Strategies (Strategies 34-41)
| Strategy | Potential Savings | What It Does |
|---|---|---|
| 34. S-Corp Election | $5K-$50K+/year | Avoid self-employment tax on distributions |
| 35. QBI Deduction (199A) | $5K-$250K/year | 20% deduction on business income |
| 36. Accountable Plan | $10K-$35K/year | Tax-free employee expense reimbursements |
| 37. HRA (Health Reimbursement) | $2K-$7.5K/year | Employer-funded medical reimbursements |
| 38. Educational Assistance | $2K-$10K/year | Up to $5,250/employee tax-free |
| 39. Augusta Rule | $1K-$10K/year | Rent home to business 14 days tax-free |
| 40. Multiple Entity Strategy | $10K-$100K+/year | Separate entities for tax optimization |
| 41. IP Holding Company | $10K-$50K/year | License IP from favorable jurisdictions |
Depreciation & Cost Recovery (Strategies 42-50)
| Strategy | Potential Savings | Best For |
|---|---|---|
| 42. 100% Bonus Depreciation | $10K-$500K+/year | Any qualifying equipment (permanent!) |
| 43. Section 179 ($2.5M limit) | $5K-$250K/year | Equipment, vehicles, QIP |
| 44. Cost Segregation | $20K-$400K first year | Properties $500K+ |
| 45. Partial Asset Dispositions | $10K-$50K per replacement | When replacing building components |
| 46. Heavy SUV Expensing | $10K-$30K | Vehicles over 6,000 lbs |
| 47. Qualified Improvement Property | Varies | 15-year interior improvements + bonus |
| 48. Repair vs. Capitalization | $1K-$100K/year | Strategic classification |
| 49. 1031 Exchange | $25K-$150K | Defer real estate gains |
| 50. Installment Sales | Varies | Spread gains over multiple years |
Business Tax Credits (Strategies 51-65)
| Credit | Potential Savings | Who Qualifies |
|---|---|---|
| 51. R&D Tax Credit | $5K-$250K+/year | Software, engineering, manufacturing process improvements |
| 52. WOTC (Work Opportunity) | $1K-$20K/year | Hiring from targeted groups ($2.4K-$9.6K per employee) |
| 53. ERC (Employee Retention) | Up to $26K/employee | 2020-2021 retroactive (still claimable!) |
| 54. 179D (Energy Deduction) | $1.50-$5/sq ft | Energy-efficient buildings |
| 55. Captive Insurance (831(b)) | $50K-$1M+/year | Form own insurance company |
| 56-65. Other Credits | Varies | Disabled access, small employer health, historic rehab, housing, renewable energy, state credits |
Retirement & Benefits (Strategies 66-80)
| Plan Type | Contribution Limit | Best For |
|---|---|---|
| 66. Cash Balance Plan | Up to $300K+/year | Profitable biz, owners 45+ |
| 67. Defined Benefit Plan | Up to $300K/year | Age-based contributions |
| 68. 401(k) Plans | $23,500 + match | Most businesses |
| 69. SEP IRA | Up to $70K/year | Self-employed, easy setup |
| 70. SIMPLE IRA | $16,000/year | Small businesses under 100 employees |
| 71. HSA | $4,150 family | Triple tax advantage |
| 72. HRA | Varies | Employer-funded medical |
| 73. Section 125 (Cafeteria) | Varies | Pre-tax employee benefits |
| 74-80. Advanced Plans | Varies | Profit-sharing, ESOP, NQDC, stock options |
Real Estate Strategies (Quick Reference)
| Strategy | Savings | What It Is |
|---|---|---|
| Real Estate Professional Status | $10K-$100K+/year | 750+ hours → unlimited loss deductions |
| Opportunity Zones | $20K-$100K+ | 10+ year hold = permanent appreciation exclusion |
| 1031 Exchange | $25K-$150K+ | Defer capital gains on property sales |
| Cost Segregation | $20K-$400K first year | Accelerate building depreciation |
How to Use This Playbook
Start Here: Your 4-Step Action Plan
Step 1: Identify Your Category
- Individual/Family taxpayer?
- Business owner?
- Real estate investor?
- High net worth ($1M+ assets)?
Step 2: Find Your Top 3-5 Strategies
- Look at the tables above
- Find strategies with the highest savings for your situation
- Mark the ones that apply to you
Step 3: Get Professional Help
- Don't DIY complex strategies
- Find a CPA who specializes in your needs
- Consider bringing in specialists for specific strategies (cost seg, estate planning, etc.)
Step 4: Implement & Document
- Start with the highest-ROI strategy first
- Keep meticulous records
- Review annually
What Changed with the One Big Beautiful Bill Act (July 4, 2025)
The biggest wins:
- 100% bonus depreciation is permanent (was going away)
- Section 179 doubled to $2.5M (was $1.25M)
- 20% QBI deduction is permanent (was expiring)
- SALT cap raised to $40K for earners under $500K (temporarily)
Common Questions
Q: Can I combine multiple strategies?
A: Yes! That's how you get massive savings. Example: S-Corp + QBI deduction + cost segregation + cash balance plan = $100K+ annual savings.
Q: Which strategies give the best return?
A: Cost segregation (10-50x ROI), R&D credits (ongoing), entity optimization (immediate impact).
Q: Will this trigger an audit?
A: Legitimate strategies done correctly won't increase audit risk. Avoid known problem areas (like kitchen cabinet misclassification) and maintain good documentation.
Q: Should I do this myself?
A: No. The savings from proper professional implementation far exceed the cost. DIY approaches miss opportunities and increase risk.
Next Steps: Get Started
This month:
- Review this playbook
- Identify 3-5 strategies that apply to you
- Schedule meeting with your CPA
This quarter:
- Implement your first high-ROI strategy
- Gather documentation
- Plan for year-end tax moves
This year:
- Systematically implement multiple strategies
- Track your tax savings
- Adjust for next year
Deep Dive Resources
Want more detail on specific strategies?
- Individual & Family Strategies (1-33) - Complete guide with examples
- Business Tax Planning (34-68) - Full business strategy implementations
- Industry Playbooks - Sector-specific applications
- Most Commonly Used Strategies - What experts use most
Disclaimer: This guide is for educational purposes. Tax laws are complex and change frequently. Always consult qualified tax professionals before implementing any strategy.
Sources
- IRS Publication 946 — How to Depreciate Property: https://www.irs.gov/publications/p946
- IRS Publication 535 — Business Expenses: https://www.irs.gov/publications/p535
- IRS Publication 334 — Tax Guide for Small Business: https://www.irs.gov/forms-pubs/about-publication-334
- IRS Publication 925 — Passive Activity Rules: https://www.irs.gov/forms-pubs/about-publication-925
- IRS Publication 463 — Travel, Gift, and Car Expenses: https://www.irs.gov/forms-pubs/about-publication-463
- IRS Publication 560 — Retirement Plans for Small Business: https://www.irs.gov/forms-pubs/about-publication-560
- IRS Publication 590-A/B — IRAs: https://www.irs.gov/forms-pubs/about-publication-590-a
- IRS Publication 969 — HSAs and Other Tax-Favored Health Plans: https://www.irs.gov/forms-pubs/about-publication-969
- Form 3800 — General Business Credit: https://www.irs.gov/forms-pubs/about-form-3800