The Tax Code is an Incentive System for Taxpayers
Here’s a question for you: If someone handed you a cheat sheet to save $100,000 or more on taxes, would you use it?
Most business owners don’t even know that cheat sheet exists. But here’s the truth—the tax code isn’t a punishment; it’s a tool.
It’s written to incentivize specific actions, like creating jobs, investing in communities, or growing your business.
Today, we’re going to break down how to use the tax code to save $100,000 or more—legally and strategically.
My name is Ed Lloyd with Ed Lloyd & Associates. I’m a CPA and Certified Tax Strategist, and for over 20 years, my team and I have helped businesses across the United States rescue millions of dollars in wasted tax payments every single year.
By the way, if you’re interested in seeing how much we can save you this year, click the link below to schedule a call with my team. Just 30 minutes could save you $100,000—or more—in taxes.
Alright let’s dive in.
Missed Deductions
First up—deductions. This is where most business owners miss out because they don’t know what’s deductible. Let’s look at a few examples:
- Vehicle Expenses: Whether it’s mileage, maintenance, or lease payments, using your car for business can significantly reduce your taxable income and save you tens of thousands of dollars a year.
- Meals and Travel: That business dinner meeting with a client or to close a deal? Business travel for prospecting or continued education. Deductible. Just save your receipts!
- Film Debt Financing: Now, here’s the heavy hitter. If you invest in a qualified movie under Section 181, you can deduct many times your investment in the first year. For example, investing $100,000 could generate a $400,000 tax deduction. This is a powerful tool for high-income earners to offset substantial income.
Missed deductions add up quickly. If you’re not keeping track, you’re leaving serious money on the table.
Missed Credits
Now let’s talk about credits. Credits are even better than deductions because they reduce your tax bill dollar-for-dollar. Here are a few that might surprise you:
- Research & Development Credit: If you’re innovating—whether it’s a new product, service, or process—you might qualify for this credit, even if you’re not a tech company.
- Work Opportunity Tax Credit: Hiring certain employees, like veterans or individuals from underserved communities, can qualify you for thousands in credits per hire.
- Energy Efficiency Credits: Have you made your office or equipment more energy-efficient? These credits reward sustainability.
These credits can add up to tens—or even hundreds—of thousands of dollars in savings. Are you leveraging them?
Layering Strategies for Maximum Savings
Here’s where it all comes together: layering strategies. When you combine deductions, credits, and advanced planning, the savings multiply. Let’s break it down:
- Entity Structure Optimization: Are you set up as the right type of business? An LLC, S-Corp, or C-Corp each has different tax benefits. Switching to the right structure could save you $20,000 or more annually. Using the wrong structure can cost you a lot more.
- Retirement Contributions: Maxing out a SEP-IRA or Solo 401(k) lets you reduce your taxable income by $30,000 or more while building wealth for the future, with accelerated retirement plans offering hundreds of thousands of dollars in tax saving opportunities.
- Real Estate Depreciation:
- Owning property allows you to deduct part of its cost every year.
- Accelerated depreciation lets you take larger deductions upfront, which is huge for cash flow.
- Engineered depreciation identifies specific components like HVAC systems or flooring, letting you fast-track additional deductions. These strategies alone can save you tens—or even hundreds—of thousands in the first year.
The beauty of layering strategies is that you’re not just saving money—you’re building a system that works for you year after year.
Story Lens: Seeing the Tax Code Differently
Here’s the thing: Most people look at taxes the wrong way. They see it as this necessary evil, a straight path to paying the government. But when you change the lens, everything shifts.
Take the lens of a wealth builder:
Instead of seeing taxes as an expense, you see them as a way to grow your business and wealth.
- Every deduction, every credit, every strategy becomes a tool to reinvest in yourself.
- Use the savings to dramatically increase your wealth over time
When you change your perspective, you stop seeing taxes as a burden and start seeing them as an opportunity.
Reducing Taxes by $100,000+
So, how does all this add up to $100,000 or more in savings? Let’s break it down:
- Optimize your entity structure: Save $20,000 or more.
- Max out retirement accounts: Save $30,000 or more.
- Take advantage of the dollars you are already spending and deduct them: Save $10,000 or more.
- Use deductions like film debt financing: Save $150,000 or more.
- Leverage accelerated and engineered depreciation: Save another $50,000 to $100,000 or more in the first year.
- Stack in credits like the R&D or Work Opportunity Credits: Add another $20,000+.
When you combine these strategies, you’re not just saving money—you’re transforming how you approach your finances.
Time to Take Action
Here’s the bottom line: The tax code isn’t here to make your life harder. It’s here to incentivize smart decisions. If you know how to use it, you can keep more of your money, grow your business, and even make an impact on your community.
If this feels like a lot to take in, don’t worry—I’m here to help.
Schedule a call today and we will see how much taxes we can rescue for you.
Don’t forget to subscribe to my You Tube channel, where I break down strategies like this every week. It’s free, it’s actionable, and it’s designed to help you save big. If you need help today, schedule a call at the link below.
Don’t leave money on the table.
Take control of your taxes, invest in your future, and start using the tax code the way it was meant to be used.
Thanks for watching, and I’ll see you in the next one!
Recent Comments