How can I reduce my taxes?

Just because you can, doesn’t mean you should! The simplest tax management techniques are usually the best, and should be pursued first. We cannot overstate this enough. We often come across highly complex (e.g. lots of moving parts with extra costs associated with them), or highly risky (e.g. high audit risk) strategies or “tactics” (often marketed as a “tax loophole” or “tax haven”) in an effort to save on taxes.

There are lots of different kinds of taxes that require different approaches, whether it’s how to deal with capital gains taxes, ordinary income taxes (from salary, and wage compensation), estate taxes, or even esoteric rules specific to company stock (e.g. 83(b) election, QSBS rollovers, etc.). With proper planning, some of these taxes can be optional.

Remember that the simplest tax management techniques are usually the best, and should be pursued first. They are fastest, cheapest, have the least regulatory constraint, and often, the least audit exposure.