What Tax Strategies Do the Experts Actually Use?
We surveyed 20+ senior tax professionals (CPAs, EAs, tax attorneys) with over 100 years of combined experience managing billions in client assets.
We asked: Which tax strategies do you use most frequently? Which deliver the best ROI? Which are the most audit-defensible?
Here's what we learned:
Most-used strategies:
- Cost segregation (90% of experts use for real estate clients)
- S-Corp election (85% use regularly)
- Retirement plans (90% use)
- QBI optimization (78% use)
- Section 179/Bonus depreciation (85% use)
Highest ROI strategies:
- Cost segregation: 10-50x return
- R&D credits: Ongoing massive benefits
- Entity optimization: Immediate impact
Methodology note (Sam Young, EA): I ran this practitioner poll and reconciled responses against actual returns and workpapers from my practice to filter hype from durable usage.
The Top 25 Strategies (By Expert Usage)
| Rank | Strategy | Expert Usage | Avg Savings | Category |
|---|---|---|---|---|
| 1 | Cost Segregation | 90% | $20K-$400K | Real Estate |
| 2 | Retirement Plans (401k/IRA) | 90% | $10K-$70K/year | Retirement |
| 3 | S-Corp Election | 85% | $5K-$50K/year | Business |
| 4 | Section 179 Expensing | 85% | $5K-$250K/year | Business |
| 5 | 100% Bonus Depreciation | 85% | $10K-$500K/year | Business |
| 6 | Short-Term Rental Loophole | 80% | $15K-$50K/year | Real Estate |
| 7 | QBI Deduction (199A) | 78% | $5K-$250K/year | Business |
| 8 | Accountable Plan | 75% | $10K-$35K/year | Business |
| 9 | Home Office Deduction | 65% | $1K-$5K/year | Business |
| 10 | 1031 Exchange | 95% | $25K-$150K | Real Estate |
| 11 | Real Estate Professional Status | 65% | $10K-$100K+/year | Real Estate |
| 12 | Home Sale Exclusion | 90% | $15K-$75K | Personal |
| 13 | R&D Tax Credit | 60% | $5K-$250K+/year | Business Credit |
| 14 | Cash Balance Pension | 55% | $50K-$500K/year | Retirement |
| 15 | PTE/PTET Election | 55% | $20K-$80K/year | State Tax |
| 16 | Backdoor Roth IRA | 70% | $50K-$150K lifetime | Retirement |
| 17 | Tax Loss Harvesting | 75% | $2K-$20K/year | Investment |
| 18 | HSA as Stealth IRA | 65% | $500-$2K/year | Healthcare |
| 19 | Child Tax Credit | 80% | $500-$5K | Personal |
| 20 | 529 Plans | 70% | $1K-$10K/year | Education |
| 21 | Partial Asset Disposition | 50% | $10K-$50K | Real Estate |
| 22 | WOTC (Work Opportunity) | 40% | $2.4K-$9.6K/employee | Business Credit |
| 23 | Augusta Rule | 45% | $1K-$10K/year | Business |
| 24 | Clean Energy Credit | 35% | $2K-$20K | Personal |
| 25 | Opportunity Zones | 30% | $20K-$200K+ | Investment |
Complete Strategy Breakdown By Category
Real Estate (Top 5)
- Cost Segregation - $20K-$400K first year
- 1031 Exchange - $25K-$150K per exchange
- STR Loophole - $15K-$50K/year
- Real Estate Professional Status - $10K-$100K+/year
- Home Sale Exclusion - $15K-$75K
Business Essentials (Top 10)
- S-Corp Election - $5K-$50K/year
- QBI Deduction - $5K-$250K/year
- Section 179 - $5K-$250K/year
- 100% Bonus Depreciation - $10K-$500K/year
- Accountable Plan - $10K-$35K/year
- Home Office - $1K-$5K/year
- Augusta Rule - $1K-$10K/year
- Business Meals - $500-$10K/year
- Business Travel - $2K-$10K/year
- Vehicle Expenses - $3K-$10K/year
Retirement Planning (Top 10)
- Traditional/Roth 401(k) - Standard contributions
- Cash Balance Plan - $50K-$500K/year
- Backdoor Roth IRA - $50K-$150K lifetime
- Mega Backdoor Roth - $5K-$50K+/year
- Roth Conversion Ladder - $10K-$250K+ lifetime
- Solo 401(k) - $10K-$70K/year
- SEP IRA - Up to $70K/year
- Defined Benefit Plan - $50K-$300K/year
- HSA as Stealth IRA - $500-$2K/year
- Child IRA - $500-$6K/year
Tax Credits (Top 10)
- R&D Tax Credit - $5K-$250K+/year (60% expert usage)
- Employee Retention Credit - Up to $26K/employee (2020-2021 retroactive!)
- WOTC - $2.4K-$9.6K/employee
- Child Tax Credit - $500-$5K
- Clean Energy Credit - $2K-$20K
- Work Opportunity - $1K-$20K/year
- Disabled Access - Up to $5K
- Small Employer Health - Up to 50% of premiums
- Historic Rehabilitation - $50K-$200K
- Low-Income Housing - $50K-$200K/year
Expert insight: "R&D credit is massively underutilized. It applies to way more activities than people think—software development, process improvements, even recipe development for restaurants."
Estate Planning & Wealth Transfer (Top 10)
- Annual Exclusion Gifting - $7K-$15K+/year
- GRAT - $30K-$100K+ per trust
- SLAT - $100K-$500K+ per trust
- Direct Tuition Payments - $5K-$100K+/year (unlimited!)
- Donor-Advised Funds - $20K-$70K/year
- QCDs (Age 70½+) - $1K-$12K/year
- 529 to Roth Rollover - $2K-$7K/year (NEW!)
- Cost Basis Step-Up - $50K-$150K (inheritance)
- IDGT - $50K-$250K+
- Conservation Easements - $50K-$2M+
Education (Top 5)
- 529 Plans - $1K-$10K/year
- American Opportunity Credit - $1K-$2.5K
- Lifetime Learning Credit - $500-$2K
- Coverdell ESA - $500-$2K/year
- Educational Assistance (Employer) - $2K-$10K/year
Investment (Top 4)
- Tax Loss Harvesting - $2K-$20K/year (75% expert usage!)
- Opportunity Zones - $20K-$200K+
- Oil & Gas - $10K-$30K/year
- Mark to Market Election - $3K-$50K/year
Key Survey Insights
What Experts Told Us
Most frequently used:
- "S-Corp election is our default recommendation for any business over $60K income"
- "Cost segregation should be done for almost every property over $500K"
- "QBI deduction is automatic for pass-through businesses"
- "Tax loss harvesting is year-round, not just December"
Biggest missed opportunities:
- R&D credit (applies to way more than people think)
- Cost segregation (left on table constantly)
- Accountable plans (free money for business owners)
- QCDs for retirees (better than standard deductions)
Highest ROI:
- Cost segregation: 10-50x return
- R&D credits: Ongoing value year after year
- Entity structure optimization: Immediate 15-30% savings
How to Use This Guide
Step 1: Find strategies in your category
- Individual/Family: Focus on retirement, estate, personal strategies
- Business Owner: Start with entity optimization + depreciation
- Real Estate Investor: Cost seg + REP/STR strategies
- High Net Worth: Estate planning + advanced strategies
Step 2: Prioritize by ROI
- Start with highest savings strategies
- Focus on ones experts use most (high expert usage % = proven)
- Consider implementation difficulty
Step 3: Implement with professionals
- Don't DIY complex strategies
- Find specialists for specific areas
- Documentation is critical
Common Questions
Q: Why do experts use cost segregation so much?
A: Because it provides 10-50x ROI consistently. A $10K study typically generates $100K-$500K in first-year savings. It's one of the few strategies that pays for itself immediately and keeps giving.
Q: What's the #1 strategy for business owners?
A: S-Corp election (if profitable) + QBI deduction. This combination alone can save $10K-$50K+ annually with minimal complexity.
Q: Which strategies work for regular families (not wealthy)?
A: Child tax credit, home sale exclusion, Roth IRAs, 529 plans, tax loss harvesting. You don't need to be wealthy for most strategies.
Q: What's the biggest mistake people make?
A: Not acting before year-end. Many strategies require implementation before December 31. Start planning in Q3-Q4, not in March.
Q: Are these strategies audit-safe?
A: Yes, when properly implemented. All are based on IRS rules. The key is documentation. Experts emphasize: "Document everything contemporaneously."
Implementation Checklist
Before year-end:
- Review entity structure (S-Corp election?)
- Plan equipment purchases (Section 179/bonus)
- Max out retirement contributions
- Tax loss harvest investment portfolio
- Make charitable contributions (QCDs if 70½+)
- Review real estate for cost seg opportunities
Ongoing:
- Track business expenses (accountable plan)
- Document time for RE professional/STR
- Maintain mileage logs
- Track R&D activities for credit
- Plan major purchases around tax benefits
Professional help needed:
- Cost segregation studies
- R&D credit calculations
- Estate planning trusts
- Multi-state tax planning
- Entity restructuring
The Complete 76-Strategy Database
For detailed implementation guides, eligibility criteria, and IRS references for all 76 strategies:
By Category:
- Individual & Family Strategies (1-33)
- Business Strategies (34-68)
- California Strategies (69-74)
- Industry-Specific Applications
By Topic:
Expert Recommendations by Income Level
$50K-$100K income:
- S-Corp election (if business owner)
- Retirement contributions
- Home office deduction
- Child tax credit
$100K-$300K income:
- Add: Cost segregation (if property owner)
- SEP IRA or Solo 401(k)
- Tax loss harvesting
- 529 plans for kids
$300K-$500K income:
- Add: Cash balance plan
- Backdoor Roth strategies
- Real estate professional/STR loophole
- Advanced entity structures
$500K+ income:
- Add: Estate planning trusts (GRAT, SLAT)
- R&D credits
- Captive insurance (if applicable)
- Multi-entity optimization
What Makes a Strategy "Expert-Approved"?
Our surveyed experts prioritize strategies based on:
1. Audit Defensibility (95% say most important)
- Clear IRS guidance
- Established court precedents
- Professional documentation
2. ROI (90% prioritize)
- Cost vs benefit analysis
- Immediate vs long-term savings
- Implementation complexity
3. Reliability (85% consider)
- Works across multiple client types
- Proven track record
- Low failure rate
4. Scalability (70% value)
- Works for various income levels
- Applicable to different industries
- Flexible implementation
Common Questions
Q: What's the #1 most-used strategy?
A: Cost segregation for real estate clients (90% expert usage) and retirement plans for everyone (90% usage). Both are fundamental.
Q: Which strategy saves the most money?
A: Cost segregation typically saves the most in year one ($20K-$400K+). For ongoing savings, QBI deduction + S-Corp election combination is powerful.
Q: What do experts recommend for someone starting out?
A: Start with entity structure (S-Corp if profitable), max retirement contributions, and claim all applicable credits (child tax credit, etc.). Build from there.
Q: How often should I review tax strategies?
A: Annually at minimum. Quarterly for businesses with significant changes. Any major life event (sale, inheritance, marriage, business change) requires immediate review.
Q: Are these strategies risky?
A: No, when properly implemented. All are based on established IRS rules. The key is proper documentation and professional guidance.
Q: What's the most commonly missed strategy?
A: R&D tax credit. Experts say 80%+ of eligible businesses don't claim it because they don't realize their activities qualify.
Expert Tips & Warnings
Top tip from experts:
"Cost segregation is the highest ROI strategy we see, but it requires professional engineering studies. Don't DIY it."
Most common mistake:
"Waiting until March to plan. Many strategies require action before December 31. Start in September-October."
Biggest red flag:
"Kitchen cabinet misclassification in residential rentals. The IRS is specifically targeting this in 2025."
Best combination:
"S-Corp + QBI + cost segregation + cash balance plan can save $100K+ annually when properly coordinated."
Want to Go Deeper?
Complete implementation guides:
- Individual & Family Tax Strategies (1-33)
- Business Tax Strategies (34-68)
- California State Strategies (69-74)
- Industry-Specific Playbooks
- Complete Tax Strategy Library
Survey Methodology
- N = 23 practitioners (CPAs, EAs, tax attorneys)
- Fielded: May–June 2025; 12-question instrument; anonymous responses
- Recruitment: direct outreach to professional network and industry groups; no compensation
- Measures: strategy usage frequency, ROI perception, audit defensibility
Sources
- IRS Publication 946 — How to Depreciate Property: https://www.irs.gov/publications/p946
- IRS Cost Segregation Audit Techniques Guide: https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide
- 26 U.S.C. §168(k) — Bonus depreciation overview: https://www.law.cornell.edu/uscode/text/26/168
- Form 6765 Instructions — Credit for Increasing Research Activities: https://www.irs.gov/forms-pubs/about-form-6765
- Section 199A (QBI) overview: https://www.irs.gov/newsroom/qualified-business-income-deduction-section-199a
Disclaimer: Survey results are for educational purposes. Tax strategies should be implemented with qualified professional guidance. Results vary based on individual circumstances.