Owner-operator truck drivers can deduct all costs required to maintain their CDL and comply with DOT regulations. This includes DOT physical exams, CDL renewal fees, FMCSA registration fees, IFTA fuel tax permits, drug testing fees, and any other compliance costs required to operate legally.
An owner-operator spending $1,200/year on DOT physicals, CDL renewal, and FMCSA fees deducts the full amount, saving $360–$480 in taxes.
Stack these deductions with the per diem deduction, vehicle Section 179 expensing, fuel costs, and maintenance deductions for a comprehensive trucking tax strategy.
Protective clothing and safety equipment required for your trade or job site is fully deductible. This includes steel-toed work boots, hard hats, safety glasses, hearing protection, gloves, high-visibility vests, respirators, and any other OSHA-required or job-required safety gear. The key test: the gear must be required for the job and not suitable for everyday wear.
A contractor spending $600/year on work boots, gloves, safety glasses, and hard hats deducts the full amount, saving $180–$240 in taxes.
Replace worn safety gear regularly and deduct each purchase. If your employer requires specific gear and does not reimburse you, ask about an accountable plan reimbursement.
All ordinary and necessary expenses for managing, conserving, and maintaining rental property are deductible. This includes property management fees (typically 8–12% of rent), repairs and maintenance, landscaping, snow removal, pest control, cleaning between tenants, locksmith fees, and any other costs directly related to keeping the property in rentable condition.
A landlord paying $4,800/year in property management fees on a $4,000/month rental deducts the full amount, saving $1,440–$1,920 in taxes.
Repairs are immediately deductible; improvements must be depreciated. The line between repair and improvement matters — a new roof is an improvement, patching a roof is a repair.
Tradespeople and contractors can deduct the full cost of tools and equipment used in their business. Small tools (under $2,500) are expensed immediately. Larger equipment qualifies for Section 179 immediate expensing or 100% bonus depreciation. This includes hand tools, power tools, ladders, scaffolding, safety gear, hard hats, work boots, and any other equipment used on the job.
A general contractor spending $5,000/year on tools, safety equipment, and work gear deducts the full amount, saving $1,500–$2,000 in taxes.
Work boots and safety gear required for your trade are deductible as protective clothing. Keep all receipts — tool purchases add up quickly over a year.
Self-employed individuals have access to powerful retirement plans — Solo 401(k), SEP-IRA, SIMPLE IRA — with contribution limits far exceeding W-2 employee options.
Maximizing a Solo 401(k) at ~$70,000 in 2026 saves $25,900 at a 37% rate — the equivalent of a $25,900 tax refund.
Solo 401(k) allows the highest contributions for most self-employed individuals. SEP-IRA is simpler but limited to 25% of net earnings.
A UNK client earned $160,000 as a freelance videographer and had no retirement plan in place. Uncle Kam compared the options side by side: a SEP-IRA would allow $29,535 in contributions; a Solo 401(k) would allow $52,000 (employee deferral plus profit-sharing). The client chose the Solo 401(k), contributed the full $52,000, and saved $19,240 in federal taxes at his 37% marginal rate. He also elected a Roth contribution option within the Solo 401(k) to build tax-free growth alongside the pre-tax bucket.
Self-employed with no retirement plan? Every year without one is money left on the table. Book a call to set up the right plan for your income level.
Be the Next Win — Book a CallSelf-employed individuals can choose from a SEP-IRA (up to 25% of net self-employment income, max $72,000 in 2026), a Solo 401(k) (up to ~$70,000 plus $7,500 catch-up if over 50), a SIMPLE IRA, or a Defined Benefit Plan (which can shelter $100,000+ annually for high earners). The Solo 401(k) is typically the best option for most self-employed individuals because it allows both employee deferrals and employer contributions.
In 2026, a Solo 401(k) allows up to $24,500 as an employee deferral (plus $7,500 catch-up if over 50) plus up to 25% of net self-employment income as an employer contribution, for a combined maximum of approximately $70,000 ($77,500 with catch-up). This is significantly higher than a SEP-IRA for most income levels.
Generally no — you cannot contribute to both a Solo 401(k) and a SEP-IRA for the same self-employment income in the same year. However, you can have a Solo 401(k) for your self-employment income and participate in an employer's 401(k) at a day job, though combined employee deferrals across all plans are capped at $24,500 in 2026.
You must establish a Solo 401(k) by December 31 of the tax year to make employee deferrals for that year. Employer profit-sharing contributions can be made up to the tax filing deadline (including extensions). A SEP-IRA, by contrast, can be established and funded up to the tax filing deadline.
No — retirement contributions reduce income tax but not self-employment tax. SE tax is calculated on net self-employment income before retirement contributions. However, the deduction for half of SE tax reduces your AGI, which in turn reduces the base on which retirement contribution limits are calculated.
Deduct business vehicle expenses using the standard mileage rate or actual expenses (depreciation, gas, insurance, repairs). Section 179 and 100% bonus depreciation allow full expensing of heavy SUVs and trucks in Year 1.
Driving 20,000 business miles at 72.5¢/mile = $14,500 deduction. A $80,000 SUV over 6,000 lbs can be fully expensed under 100% bonus depreciation, saving $29,600 at 37%.
Must choose standard mileage or actual expenses in the first year — you cannot switch back. Heavy SUVs and trucks are the most powerful vehicle deduction available.
A UNK client drove 28,000 business miles per year showing properties, attending closings, and meeting with clients. She had been deducting nothing because she thought she needed to track every gas receipt. Uncle Kam introduced the standard mileage rate method: 28,000 miles × $0.725/mile (2026 rate) = $20,300 in deductions. At her 24% rate, that was $4,872 in tax savings — from a mileage log she started keeping on her phone.
Drive for business? Every mile you don't track is money you're giving to the IRS. Book a call to set up a proper mileage tracking system.
Be the Next Win — Book a CallYes. If you use your car for business purposes, you can deduct either the standard mileage rate ($0.725/mile in 2026) or your actual vehicle expenses (gas, insurance, repairs, depreciation) multiplied by the business-use percentage. You must keep a mileage log documenting the date, destination, business purpose, and miles driven.
The IRS standard mileage rate for business driving is $0.725 per mile in 2026. This rate covers gas, insurance, maintenance, and depreciation. You can also deduct actual tolls and parking fees separately on top of the mileage rate.
No. Commuting from your home to your regular workplace is not deductible. However, if you have a qualifying home office, all trips from your home to client sites, meetings, or other business locations are deductible business miles.
Yes. The IRS requires contemporaneous records documenting the date, destination, business purpose, and miles driven for each business trip. Apps like MileIQ, Everlance, or even a simple spreadsheet work well. Reconstructed logs created at tax time are a significant audit risk.
Yes. An LLC can deduct vehicle expenses either through an accountable plan (reimbursing the owner for business miles) or by having the LLC own the vehicle directly. For heavy SUVs over 6,000 lbs GVWR, Section 179 and bonus depreciation can generate massive first-year write-offs.
Deduct 100% of the cost of qualifying new or used property in the first year it is placed in service. The OBBBA permanently restored 100% bonus depreciation for property with a recovery period of 20 years or less.
A $1M equipment purchase at 100% bonus depreciation generates a $1M Year 1 deduction, saving $370,000 at a 37% rate.
The OBBBA (signed July 4, 2025) permanently reversed the TCJA phase-down schedule. 100% bonus depreciation is now the permanent law for qualifying property. Combine with Section 179 for maximum flexibility.
A UNK client purchased $700,000 in commercial trucks and warehouse equipment for his logistics business. With 100% bonus depreciation permanently restored under the OBBBA, he immediately deducted the full $700,000 — creating a net operating loss that he carried back to offset prior year income. The IRS sent him a refund check for $259,000.
Planning a major equipment or vehicle purchase? 100% bonus depreciation is back permanently. Book a call to plan your purchase strategy.
Be the Next Win — Book a CallBonus depreciation allows businesses to immediately deduct 100% of the cost of qualifying assets in the year of purchase. The OBBBA (signed July 4, 2025) permanently restored 100% bonus depreciation for property placed in service after January 19, 2025. It applies to new and used equipment, vehicles, and qualified improvement property.
No. The OBBBA permanently restored 100% bonus depreciation for property placed in service after January 19, 2025. The prior phase-down schedule (40% in 2025, 20% in 2026, 0% in 2027) has been eliminated. This is now a permanent feature of the tax code.
Yes — unlike Section 179, bonus depreciation can create or increase a net operating loss (NOL). That NOL can be carried forward to future years to offset future income, or in some cases carried back to prior years for a refund.
Yes. Since 2017, bonus depreciation applies to both new and used qualifying property, as long as the property is new to you (you have not previously used it). This makes it possible to generate large deductions from purchasing used equipment, vehicles, or even existing rental properties.
Yes. You can elect out of bonus depreciation for a specific class of assets (e.g., all 5-year property) if you prefer to depreciate assets over their regular recovery period. This might make sense if you expect to be in a higher tax bracket in future years and want to preserve deductions for when they are worth more.
Gig delivery drivers can deduct all supplies and equipment used in their delivery business. This includes insulated delivery bags, hot bags, cold bags, phone mounts, car chargers, power banks, flashlights, and any other gear used to complete deliveries. These are small but real deductions that add up over a year of full-time delivery work.
A DoorDash driver spending $400/year on insulated bags, phone mounts, and car accessories deducts the full amount, saving $120–$160 in taxes.
Stack this deduction with the mileage deduction, phone deduction, and self-employment tax deduction for maximum savings. Keep all receipts from Amazon or delivery supply stores.
Self-employed individuals can deduct 50% of the self-employment tax they pay (the employer-equivalent portion) as an above-the-line deduction, reducing adjusted gross income.
A freelancer with $100,000 in net SE income pays $14,130 in SE tax. The 50% deduction ($7,065) saves $2,614 at a 37% rate.
This deduction is automatic — it appears on Schedule 1 of Form 1040. Ensure your tax software is calculating it correctly.
A UNK client was a freelance software developer earning $120,000 in net self-employment income. He had been filing his own taxes and had missed the SE tax deduction for two years. Uncle Kam identified the issue: the IRS allows self-employed individuals to deduct 50% of their self-employment tax as an above-the-line deduction. On $120,000 in net income, the SE tax was $16,955 — and the deduction was $8,478. At his 24% rate, this saved $2,034/year — and he recovered $4,068 by amending two prior returns.
Self-employed and filing your own taxes? A quick review might reveal deductions you've been missing for years. Book a call.
Be the Next Win — Book a CallSelf-employed individuals pay 15.3% self-employment tax (covering Social Security and Medicare) on net self-employment income. The IRS allows you to deduct 50% of the SE tax paid as an above-the-line deduction on Schedule 1 of your Form 1040. This deduction reduces your adjusted gross income and is available regardless of whether you itemize.
The deduction equals 50% of your total SE tax. For someone with $100,000 in net SE income, the SE tax is approximately $14,130, and the deduction is $7,065. At a 24% marginal rate, this saves $1,696 in income taxes — on top of the SE tax already paid.
No. The SE tax deduction is an above-the-line deduction, meaning it reduces your adjusted gross income (AGI) regardless of whether you take the standard deduction or itemize. It is one of the most straightforward and universally available deductions for self-employed individuals.
The most effective way to reduce SE tax is to elect S-Corp status. As an S-Corp, you pay SE tax (payroll taxes) only on your reasonable salary — not on the full profit. Distributions above the salary are not subject to SE tax. For someone earning $150,000+ net, this can save $10,000–$20,000/year.
No. They are separate deductions. The SE tax deduction (50% of SE tax paid) reduces your AGI. The QBI deduction (up to 23% of qualified business income under the OBBBA) is a separate below-the-line deduction that reduces taxable income. Both are available to self-employed individuals and can be claimed simultaneously.
Self-employed individuals and small business owners can contribute up to 25% of net self-employment income (maximum $72,000 in 2026) to a SEP-IRA with minimal administrative requirements.
A freelancer earning $150,000 contributes $27,500 (25% × $110,000 net SE income) to a SEP-IRA, saving $10,175 in taxes at a 37% rate.
Simpler than a Solo 401(k) but lower contribution limits for high earners. Can be established and funded up to the tax deadline including extensions.
A UNK client was a freelance photographer who had just filed for a tax extension. She had $95,000 in net self-employment income and no retirement plan. Uncle Kam informed her that a SEP-IRA could be opened and funded up to the tax filing deadline — including extensions. She contributed $17,666 (the maximum 25% of net SE income after the SE deduction) in April, reducing her taxable income by $17,666 and saving $4,240 in federal taxes and $2,500 in SE taxes.
Self-employed and haven't set up a retirement plan? A SEP-IRA can be opened and funded up to your tax deadline. Book a call today.
Be the Next Win — Book a CallA Simplified Employee Pension (SEP-IRA) is a retirement account for self-employed individuals and small business owners. It allows contributions of up to 25% of net self-employment income (after the SE tax deduction), with a maximum of $72,000 in 2026. Any self-employed person with net income can open a SEP-IRA.
A SEP-IRA can be opened and funded up to the tax filing deadline, including extensions. For a sole proprietor, this means you can open a SEP-IRA and make a 2026 contribution as late as October 15, 2027 (with an extension). This makes it the most flexible retirement plan for last-minute tax planning.
The SEP-IRA contribution limit is 25% of net self-employment income (after deducting half of self-employment tax), up to a maximum of $72,000 in 2026. For a freelancer with $100,000 in net income, the maximum SEP-IRA contribution is approximately $18,587.
For most self-employed individuals, a Solo 401(k) allows higher contributions because it includes both employee deferrals and employer contributions. A SEP-IRA is simpler to administer and can be opened after year-end. If you want maximum contributions and are willing to manage payroll, the Solo 401(k) wins. If simplicity is the priority, the SEP-IRA is excellent.
Yes. SEP-IRA contributions do not affect your ability to contribute to a Roth IRA (subject to income limits) or use the backdoor Roth strategy. However, having pre-tax SEP-IRA funds can complicate backdoor Roth conversions due to the pro-rata rule. Uncle Kam helps clients navigate this interaction.
Self-employed individuals can contribute both as employee ($24,500 in 2026, or $31,000 if 50+) and employer (up to 25% of compensation), for a combined maximum of approximately $70,000.
A self-employed consultant earning $200,000 contributes ~$70,000 to a Solo 401(k), reducing taxable income to $130,000 and saving $25,900 at a 37% rate.
Must establish the plan by December 31 of the tax year (contributions can be made until tax filing deadline). Roth Solo 401(k) allows tax-free growth.
A UNK client earned $180,000 as a freelance UX designer and was paying taxes on nearly all of it. Uncle Kam set up a Solo 401(k) and maximized contributions: $24,500 as the employee deferral plus $43,000 as the employer profit-sharing contribution (25% of net self-employment income) — totaling $67,500 in pre-tax contributions. At her 32% marginal rate, this saved $21,600 in federal taxes while building $67,500 in retirement wealth.
If you're self-employed and not maximizing a Solo 401(k), you're overpaying taxes and under-saving for retirement. Book a call to set one up.
Be the Next Win — Book a CallA Solo 401(k) is a retirement plan for self-employed individuals with no full-time employees other than a spouse. It allows contributions in two capacities: as an employee (up to $24,500 in 2026, plus $7,500 catch-up if 50+) and as an employer (up to 25% of net self-employment income), with a combined limit of approximately $70,000 in 2026.
The total Solo 401(k) contribution limit is approximately $70,000 in 2026 ($77,500 if age 50 or older). This includes up to $24,500 in employee deferrals plus employer profit-sharing contributions of up to 25% of net self-employment income (after the SE tax deduction).
A Solo 401(k) must be established by December 31 of the tax year for which you want to make contributions. Employee deferrals must also be made by December 31. Employer profit-sharing contributions can be made up to the tax filing deadline (including extensions).
Yes, but the employee deferral limit ($24,500 in 2026) applies across all 401(k) plans combined. If you contribute $24,500 to your employer's 401(k), you cannot make additional employee deferrals to your Solo 401(k). However, you can still make employer profit-sharing contributions to the Solo 401(k).
A Solo 401(k) generally allows higher contributions for most self-employed individuals because it includes both employee deferrals and employer contributions. A SEP-IRA is limited to 25% of net self-employment income (no employee deferral component). For someone earning $100,000 net, a Solo 401(k) allows $46,000 vs. $18,587 for a SEP-IRA.
These are the high-impact strategies that save Uncle Kam clients $40,000–$150,000/year. They require expert implementation — which is exactly what a strategy call is for.
Book A Free Strategy Call To UnlockAccelerates depreciation on commercial and residential rental property by reclassifying components into shorter recovery periods (5, 7, or 15 years) instead of 27.5 or 39 years.
A $2M commercial building can generate $200,000–$400,000 in accelerated deductions in Year 1, saving $80,000–$160,000 in taxes at a 40% effective rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockSTR properties with average guest stays of 7 days or less are NOT subject to passive activity loss rules, allowing losses to offset active W-2 or business income.
A $600,000 STR property with a cost seg study generates $150,000 in Year 1 deductions, offsetting $150,000 of W-2 income and saving $55,500 at a 37% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockQualify as a Real Estate Professional to treat all rental losses as non-passive, allowing unlimited deduction against any income including W-2 wages. Requires 750+ hours per year in real estate activities.
A physician earning $400,000 W-2 whose spouse qualifies as a REPS can deduct $200,000 in rental losses, saving $74,000 in federal taxes.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockDefer and potentially eliminate capital gains taxes by investing in Qualified Opportunity Zone Funds within 180 days of a capital gain event.
Investing $500,000 of capital gains into a QOF and holding 10 years eliminates all taxes on the new appreciation — potentially $300,000+ in tax-free gains.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockRent your personal home to your business for up to 14 days per year. The rental income is tax-free to you personally, and the business deducts the full rental expense.
Renting your home to your S-Corp for 14 days at $2,000/day = $28,000 tax-free income to you, $28,000 deduction for the business, saving $10,360 in combined taxes.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockSpread the recognition of capital gains from a property sale over multiple years by receiving payments in installments, keeping annual income in lower tax brackets.
Selling a property with $600,000 in gains. Spreading over 6 years keeps you in the 15% capital gains bracket instead of 20%, saving $30,000+.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockEstablish a formal accountable plan to reimburse employees (including owner-employees) for business expenses tax-free. The business deducts the reimbursement; the employee pays no income or payroll tax on it.
An S-Corp owner with $15,000 in home office, vehicle, and phone expenses reimburses through an accountable plan, saving $5,550 in combined income and payroll taxes.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockA dollar-for-dollar tax credit for qualified research expenses including wages, supplies, and contract research. Startups can apply up to $500,000/year against payroll taxes.
A software company spending $500,000 on R&D wages qualifies for a $50,000–$100,000 federal tax credit, dollar-for-dollar against taxes owed.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockA business owner creates their own insurance company to insure business risks. Premiums paid to the captive are deductible by the business; the captive pays tax only on investment income under §831(b).
A business paying $1.2M in captive premiums deducts the full amount, saving $444,000 at a 37% rate. The captive pays minimal tax on investment income.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockDeduct up to $5.00 per square foot for energy-efficient improvements to commercial buildings, including HVAC, lighting, and building envelope upgrades.
A 50,000 sq ft commercial building with qualifying improvements generates $250,000 in deductions, saving $92,500 at a 37% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockA defined benefit plan allows high-income self-employed individuals and business owners to contribute $200,000–$300,000 per year based on actuarial calculations, far exceeding 401(k) limits.
A physician earning $500,000 contributes $265,000 to a defined benefit plan, saving $98,050 in taxes at a 37% rate — far exceeding the $69,000 Solo 401(k) limit.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockContribute after-tax dollars to a 401(k) plan (up to the ~$70,000 total 2026 limit minus pre-tax contributions) and convert them to Roth, creating tax-free growth on a much larger balance.
Contributing $46,000 in after-tax 401(k) and converting to Roth annually for 20 years at 7% growth = $1.9M in tax-free retirement assets.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockTransfer appreciated assets into a CRT, receive an immediate charitable deduction, avoid capital gains on the sale, and receive income payments for life or a term of years.
Transferring $1M in appreciated stock (basis $100,000) to a CRT eliminates $180,000 in capital gains tax, generates a $300,000+ charitable deduction, and provides lifetime income.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockFounders and investors in qualified small businesses can exclude up to $10 million (or 10× their adjusted basis) in capital gains from federal income tax when selling stock held for more than 5 years.
A founder selling $10M in QSBS stock (basis $100K) excludes the entire $9.9M gain, saving $1.98M in federal capital gains taxes.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockInvest capital gains from any source into a Qualified Opportunity Fund within 180 days to defer the gain until December 31, 2026, and eliminate all taxes on appreciation after 10 years.
A $2M capital gain invested in a QOF: defers $400,000 in taxes until 2026. If the fund doubles to $4M in 10 years, the $2M appreciation is completely tax-free.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockAn ILIT owns your life insurance policy, keeping the death benefit out of your taxable estate while providing liquidity to pay estate taxes or transfer wealth to heirs tax-free.
A $5M life insurance policy owned by an ILIT removes $5M from the taxable estate, saving $2M in estate taxes at a 40% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockTransfer assets into a GRAT, receive annuity payments for a term of years, and pass all appreciation above the IRS hurdle rate to heirs completely free of gift and estate tax.
Transferring $5M in stock expected to grow 15%/year into a 2-year GRAT: $1.5M in appreciation passes to heirs tax-free, saving $600,000 in gift/estate taxes.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockInvest in qualifying film, TV, or entertainment productions to generate federal deductions under §181 and state tax credits of 20–40% of qualifying production expenditures.
A $500,000 investment in a Georgia film production generates a $100,000 state tax credit (20%) plus a federal §181 deduction, saving $285,000+ in combined taxes.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockDonate a conservation restriction on qualifying land to a land trust, generating a charitable deduction equal to the reduction in property value — often 2–5× the cost of the easement.
A $500,000 easement on land with $2M in conservation value generates a $2M charitable deduction, saving $740,000 at a 37% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockExecutives and highly compensated employees can defer a portion of their compensation to future years, deferring income tax until the funds are received — typically in lower-income retirement years.
Deferring $200,000 in bonus income from a 37% bracket to retirement at a 24% bracket saves $26,000 in taxes on that deferral.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockHire your children or spouse in your business to shift income to lower tax brackets. Children under 18 working for a sole proprietorship or partnership owned by parents are exempt from FICA taxes.
Paying a 16-year-old child $15,750/year (2026 standard deduction): $0 federal income tax for the child, $15,750 deduction for the business, saving $5,828 at a 37% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockEmployers who provide or pay for childcare facilities for employees receive a tax credit of 25% of qualifying childcare expenditures and 10% of childcare resource and referral expenditures, up to $150,000/year.
An employer spending $500,000 on an on-site childcare facility receives a $125,000 tax credit (25%), plus the remaining $375,000 is deductible.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockMany states allow S-Corps and partnerships to elect to pay state income tax at the entity level, generating a federal deduction that bypasses the $10,000 SALT cap for individual owners.
An S-Corp owner in California paying $50,000 in state income tax: PTET election moves $40,000 above the SALT cap to a federal deduction, saving $14,800 at a 37% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockNon-qualified deferred compensation plans allow highly compensated employees to defer a portion of salary or bonus to a future date, deferring income taxes until distribution.
An executive deferring $200,000 of bonus income at a 37% rate saves $74,000 in current-year taxes. If distributed at a 24% rate in retirement, permanent savings of $26,000.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockIncentive Stock Options qualify for long-term capital gains rates if held correctly, but the spread at exercise is an AMT preference item. Strategic exercise timing minimizes total tax.
An executive with $1M in ISO spread who exercises in a low-income year and holds for 12 months pays 20% long-term rates vs. 37% ordinary income — saving $170,000.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockInvest capital gains into a Qualified Opportunity Fund within 180 days to defer the original gain until 2026 and eliminate all appreciation on the QOZ investment after a 10-year hold.
An investor with $500,000 in capital gains invests in a QOZ fund. The $500K gain is deferred to 2026. If the fund grows to $1.5M, the $1M appreciation is completely tax-free.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockA Family Limited Partnership allows transfer of assets to family members at a valuation discount (typically 20–40%) due to lack of control and marketability, reducing estate and gift tax exposure.
A $10M real estate portfolio transferred via FLP at a 35% discount reduces the taxable estate by $3.5M, saving $1.4M in estate taxes at a 40% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockA Charitable Lead Trust pays income to a charity for a set term, then passes the remaining assets to heirs. Creates an upfront charitable deduction and reduces estate taxes.
A $2M CLT with a 5% payout to charity for 20 years generates a $1.2M charitable deduction upfront, saving $444,000 in income taxes at a 37% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockPrivate Placement Life Insurance wraps a customized investment portfolio inside a life insurance policy structure, providing tax-free growth, tax-free loans, and estate tax-free death benefits.
A $5M portfolio growing at 8%/year inside PPLI vs. a taxable account: after 20 years, PPLI generates $2.3M more in after-tax wealth by eliminating annual income taxes on growth.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockA self-directed IRA allows investment in alternative assets including real estate, private loans, and businesses — generating tax-deferred (Traditional) or tax-free (Roth) returns.
A Roth self-directed IRA that purchases a $300,000 rental property generating $24,000/year in rent: all rental income and appreciation grow completely tax-free.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockQualified Small Business Stock (QSBS) under Section 1202 allows founders, employees, and investors to exclude up to $10 million (or 10x basis) in capital gains when selling stock held for more than 5 years.
A founder who sells $10M in QSBS stock pays $0 in federal capital gains tax — saving $2,380,000 vs. the 23.8% long-term rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockInvestments in oil and gas working interests allow immediate deduction of 65–80% of the investment as Intangible Drilling Costs (IDC), plus ongoing depletion allowances on production.
A $500,000 investment in an oil and gas working interest generates $325,000–$400,000 in Year 1 IDC deductions, saving $120,000–$148,000 at a 37% rate.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockInvestments in qualified film and television productions generate state tax credits (25–35% of production spend) plus federal deductions under IRC §181 for productions under $15M.
A $200,000 investment in a Georgia film production generates a $60,000 Georgia state tax credit (30%) plus potential federal deductions — total tax benefit of $80,000–$100,000.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockEach cryptocurrency trade, swap, or exchange is a taxable event. Proper structuring — holding periods, loss harvesting, and entity selection — can dramatically reduce crypto tax liability.
A trader with $200,000 in short-term crypto gains who restructures to maximize long-term holds and harvests $60,000 in losses saves $37,000 in taxes.
Get the complete MERNA strategy notes, IRS red flag warnings, action steps, and implementation guide on a free strategy call.
Book A Free Strategy Call to UnlockThe per diem meal deduction allows owner-operators to deduct $69/day for every day away from home — up to $25,185/year for full-time long-haul drivers.
Section 179 and bonus depreciation let owner-operators write off 100% of truck and trailer costs in Year 1 — generating massive first-year deductions.
An S-Corp election can save owner-operators $10,000–$25,000/year in self-employment taxes once net profit exceeds $60,000.
Each strategy below has its own dedicated page with full eligibility requirements, savings examples, and IRS citations.
