You’ve worked hard to get where you are, and one thing you’ve no doubt learned along the way is that tax season is usually the biggest pain when you’re managing your accounts.

And if you’re not familiar with the deductions you may qualify for that pain is even worse.

Don’t pull your hair out over the confusing (and ever-changing) tax code— just need some help from the right advisors. Then you can lower your overall tax bill and keep more of your hard-earned money.

In this guide, we’ll break down the essentials of tax deductions for tax year 2024 (what you’ll file in 2025). Whether you’re an individual filer, a small business owner, or someone looking to maximize advanced tax-saving strategies, this article will provide you with the tools you need to take control of your taxes.

We’ll start with standard deductions, the simplest way to lower your taxable income. Then, we’ll explore business deductions, which can help entrepreneurs and freelancers save big. Finally, we’ll dive into advanced deductions, perfect for those looking to optimize their finances with more complex tax strategies.

Let’s get started on your path to smarter tax filing in 2025!

Standard Deductions

As usual, taxpayers, including business owners, can choose between standard deductions and itemized deductions when filing their 2024 income taxes. 

(The standard deduction or itemized deductions differ from self-employed business expense deductions. To maximize your deductions across all income types, we highly recommend you get the tax advice you need for your specific situation.)

Many prefer the standard deduction offered by the IRS due to its simplicity. This fixed amount reduces taxable income and varies based on your filing status. The IRS has increased the standard deduction to account for annual inflation. The standard deduction for married couples filing jointly for tax year 2024 rose to $29,200, an increase of $1,500 from tax year 2023. 

For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600, an increase of $750 from 2023. For heads of households, the standard deduction is $21,900, an increase of $1,100.

The standard deduction amounts for tax year 2024 (taxes filed in 2025) and for tax year 2025 (taxes filed in 2026) are as follows:

Filing status	2024 standard deduction	2025 standard deduction
Single	$14,600	$15,000
Head of household	$21,900	$22,500
Married filing jointly	$29,200	$30,000
Married filing separately	$14,600	$15,000

Business Deductions

The more tax deductions your business claims, the lower your taxable profit—and that means more money in your pocket.

But knowing what’s deductible and following IRS rules is key. Also, you and your CPA need to know the difference between credits and deductions for businesses and how to claim them on your tax return. 

In simple terms, a deduction is an amount you subtract from your income when you file so you don’t pay tax on it. A credit is an amount you subtract from the tax you owe. Here are credits you can claim when you file your taxes this year.

As for business deductions, claiming as many of them as you're entitled to can make a big difference for your bottom line. 

So, the question now becomes …

What Deductions Can Your Small Business Claim?

When totaling up your business expenses, remember these common deductions:

Auto Expenses

If you use a car for business, you can deduct costs like gas, maintenance, and even depreciation. There are two ways to calculate this:

• Actual Expense Method: Track and deduct all business-related car expenses, including depreciation.
• Standard Mileage Rate: Deduct a set amount for every mile driven (67 cents per mile for 2024) plus business-related tolls and parking fees.

Startup Costs

Getting your business off the ground? You can deduct up to $5,000 in startup expenses the first year. The rest must be spread out over 15 years.

Legal and Professional Fees

Fees for lawyers, tax pros, or consultants are deductible. If the service benefits future years, spread the deduction across the life of the benefit.

Insurance

You can deduct premiums for business-related insurance, including:

• Employee health insurance
• Liability insurance
• Property insurance (fire, theft, flood)
• Business interruption insurance

Travel

Business trips? Deduct airfare, car expenses, lodging, meals, and even laundry. If you mix business with pleasure, only the business-related costs are deductible.

Interest

If you borrow for your business, the interest is tax-deductible. But if your profits exceed $25 million, only 30% of interest expenses are deductible under current laws.

Taxes

Yep, what you paid in taxes can reduce your tax burden. Certain taxes are deductible, like:

• Sales tax on business supplies
• Property taxes on business locations
• Employer-paid payroll taxes

However, federal income taxes on business profits are not deductible.

Education

Training and education expenses that improve your current business skills are deductible. Just make sure it’s related to your existing work—not a new career.

Advertising and Promotion

Deduct the cost of promoting your business, such as business cards, websites, or even sponsoring local events—if there's a clear link to your business.

20% Pass-Through Deduction

If you run a pass-through business (like a sole proprietorship, partnership, or LLC), you may qualify to deduct up to 20% of your net income. This deduction lasts through 2025.

Employee Expenses

Employee salaries, payroll taxes, and benefits like health insurance are fully deductible.

Independent Contractors

The cost of hiring independent contractors, such as bookkeepers or cleaners, is deductible too.

Home Office

If you work from home, you can deduct a portion of your home expenses, like rent, utilities, and maintenance. The space must be used exclusively for business.

Don’t Miss These Additional Write-Offs

Here are some easy-to-overlook deductions:

• Bank fees
• Business association dues
• Office supplies
• Parking fees
• Business gifts (up to $25 per gift)
• Trade shows and seminars

Maximizing deductions takes careful planning, but it’s worth it. When in doubt, consult a tax professional to ensure you’re getting every tax break your business deserves.

Advanced Deductions

When it comes to working with a tax professional this year, Don’t leave money on the table by working with someone who doesn’t understand advanced strategies for reducing your tax burden.

Many CPAs don’t understand that it's possible to save outside the standard deductions. What are we talking about? 

Things like tax-loss harvesting can offset gains and reduce tax liability. Charitable giving or even setting up a private nonprofit foundation can also help.

The IRS also provides tax incentives for business investments in fixed assets through Section 179 and Bonus Depreciation deductions. Let’s take a closer look at these.

These two deductions are often applied for manufacturing and real estate companies, but they can be creatively applied to many other businesses as well. 

Bonus depreciation requires applying the deduction across all assets within a particular asset class, whereas Section 179 allows for more selective application on an asset-by-asset basis. 

Both deductions must be taken in the tax year when the asset is placed into service. However, Section 179 allows flexibility to defer part of the expense, while bonus depreciation requires a set percentage to be applied.

Understanding the differences between these deductions helps optimize tax benefits. Let’s take a look.

Section 179

Section 179 gets its name from section 179 of the Internal Revenue Code. It allows business owners to write off the full cost of eligible property in the year it is purchased and put into use instead of deducting the depreciation over time.

Note: You cannot take a 179 deduction on property purchased in a previous year, even if this is the first year you used the property for business purposes.

Section 179 Eligibility

Property eligible for the Section 179 deduction is usually tangible personal property (usually equipment or office furniture) purchased for use in your business. If you use property for both personal and business purposes, you can only use a Section 179 deduction if the asset is used at least 51 percent of the time for business. 

Section 179 Deduction Limitations

The total amount of purchases you can write off changes every time Congress updates IRC section 179 of the tax code. For tax years beginning in 2024, the maximum section 179 expense deduction is $1,220,000. 

Section 179 + S Corp

Using a Section 179 tax deduction with your S Corp means you can deduct the full purchase amount of business equipment from your personal taxable income. Since an S Corp is a pass-through entity, when a Section 179 deduction is personally allocated to you from an S Corp or partnership, the income and expense are “passed through” to you, and you claim it on your individual tax return. 

This means any income you earn from your S Corporation will be reduced by your Section 179 deductions, and you’ll only have to pay taxes on the reduced amount. 

Bonus Depreciation

If you can't write off an asset immediately, you have to depreciate it. You deduct a percentage of the value each year until you've written off the entire cost.

It's also possible that you can take off extra for expenses that exceed the Section 179 limit, the first year as "bonus depreciation." 

Starting in 2024, bonus depreciation rates decreased to 60 percent.

Bonus Depreciation Eligibility

Eligible assets extend to farm buildings and land improvements with a useful life of 1-20 years, including certain real estate improvements.

Bonus Depreciation Deduction Limitations

Unlike Section 179, there’s no business income limit, so it's usable even when reporting a business loss.

Combining Section 179 and Bonus Depreciation

You can use both Section 179 and bonus depreciation, especially when near the Section 179 deduction limits. However, state regulations may differ from federal rules, so be mindful of potential complications when filing state tax returns.

By strategically using Section 179 and bonus depreciation, business owners can effectively manage their tax liabilities while maximizing deductions on qualifying assets.

• Income and Expense Evaluation: Use Section 179 if you have enough business income; otherwise, bonus depreciation is more suitable.
• Consider Fixed Asset Purchases: If total fixed asset additions exceed Section 179 limits, bonus depreciation may be the better choice.
• Tax Bracket Planning: Analyze current and future tax brackets to decide between accelerated or straight-line depreciation.

What’s New for Advanced Deductions … According to the Internal Revenue Service Section 179 deduction dollar limits. For tax years beginning in 2024, the maximum section 179 expense deduction is $1,220,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $3,050,000.Also, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2024 is $30,500. Phase down of special depreciation allowance. The special depreciation allowance is 60% for certain qualified property acquired after September 27, 2017, and placed in service after December 31, 2023, and before January 1, 2025 (other than certain property with a long production period and certain aircraft). Property with a long production period and certain aircraft placed in service after December 31, 2023 and before January 1, 2025 is eligible for a special depreciation allowance of 80% of the depreciable basis of the property. The special depreciation allowance is also 60% for certain specified plants bearing fruits and nuts planted or grafted after December 31, 2023 and before January 1, 2025. —(Source Also see Certain Qualified Property Acquired After September 27, 2017 and Certain Plants Bearing Fruits and Nuts under What Is Qualified Property?)

Get Help, Get Results

Remember: Staying informed about the latest tax changes is crucial to avoid costly mistakes. The choices you make for your business this year will directly impact your tax obligations next year. 

The right tax professionals can help you navigate complex regulations, maximize tax benefits, and align with current tax laws. 

Lower level CPAs may not even know it's possible to save outside the standard deductions, and even more competent CPAs tend to only know about S-Corporations and real estate investing.

What you want is a CPA who earns a high income, just like you, and who has found a way to pay nearly $0 in tax by leveraging advanced strategies. It's even better if they have an MBA and can perform Chief Financial Officer functions. When you work with a CPA at that level, you’ll find lots of ways to save on tax, even if you're a W2 employee (or active 1099) with zero investment experience.

In turn, that improves your cash flow and gives you more cash to reinvest in your business's success and in your long-term strategy for building generational wealth.

Let's face it, paying taxes stinks. 

No one likes to think about tax code updates, but the fact is the 2025 tax season is here, things have changed, and you can’t avoid it! 

Failing to plan is planning to fail is a cliche, sure, but it’s the truth. If you don’t work with someone who is familiar with the tax code updates, you’ll leave money on the table now that tax season is rearing its ugly head again. 

There were several tax code updates for the 2024 tax year that W2 (or active 1099) workers and business owners need to know about . 

To help you navigate the murky waters of the 2025 tax season, we compiled a list of the four most important tax code updates from that session. 

Work with your CPA who knows about advanced strategies. Someone with an MBA who can perform Chief Financial Officer functions.  With their help and the information below, you’ll navigate complex tax decisions and make building your financial future seem easy.

#1 Tax Code Updates On Income Brackets

How much you pay in taxes depends on your income and your filing status ( whether you’re single, married, or filing jointly). 

Your income isn’t taxed at a single, flat rate. Instead, it’s divided into tax brackets. You may pay several different tax rates on various parts of your earnings.

The 2024 tax brackets apply to income earned last year (what you’ll report on tax returns filed in 2025):

Tax rate	Single Taxable Income	Married Filing Jointly Taxable Income	Married Filing Separately Taxable Income	Head of Household Taxable Income
10%	Up to $11,600	Up to  $23,200	Up to  $11,600	Up to  $16,550
12%	$11,601 to $47,150	$23,201 to $94,300	$11,601 to $47,150	$16,551 to $63,100
22%	$47,151 to $100,525	$94,301 to $201,050	$47,151 to $100,525	$63,101 to $100,500
24%	$100,526 to $191,950	$201,051 to $383,900	$100,526 to $191,950	$100,501 to $191,950
32%	$191,951 to $243,725	$383,901 to $487,450	$191,951 to $243,725	$191,951 to $243,700
35%	$243,726 to $609,350	$487,451 to $731,200	$243,726 to $365,600	$243,701 to $609,350
37%	$609,351 or more	$731,201 or more	$365,601 or more	$609,351 or more

#2 Standard Deductions Increase For Everyone

The standard deduction allows you to save money on taxes by reducing your taxable income. The standard deduction for married couples filing jointly for tax year 2024 increased to $29,200, $1,500 more than tax year 2023. 

For single taxpayers and married individuals filing separately, the standard deduction is $14,600 for 2024, an increase of $750 from the previous year.

For heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100.

You can also leverage standard deductions by paying your children to work for you (up to the standard deduction amount). Here are some general rules that you should follow if you have children who can work for you: 

• Children have to be doing work for you. 
• Pay your children in a way that is commensurate with their age and the tasks they are doing. 
• Although technically, you don't have to file a tax return for less than $12,950 in wages. It's probably a good idea to do so just so that you have proof that you paid your children in case you get audited. 

Read our article Hiring Your Children Has Monumental Benefits: Decrease Taxes, Increase Profits. It gives you an in-depth look at how you can hire your children, claim an expense for your business, and keep your wealth within your family. 

#3 Safeguard Your Health And Money With HSA Contributions

You can reduce your taxable income by contributing to a health savings account. This account helps you pay for medical expenses. 

The deductible contribution increased to $3,650 from $3,600 for a single person. For families, the HSA deductible went to $7,200 from $7,300. 

Health Savings Accounts (HSAs) are a smart way to save money for medical expenses. Why? Because the money you put in—and use for qualified medical costs—is tax-free.

Before contributing to an HSA, you must meet these requirements:

1. You’re enrolled in an HSA-eligible health plan.
   • For 2024, this means:
     • A deductible of at least $1,600 (self-only) or $3,200 (family)
     • An out-of-pocket max no higher than $8,050 (self-only) or $16,100 (family)
2. You don’t have conflicting coverage.
   • This includes non-HSA-eligible health plans or a full-purpose health care Flexible Spending Account (FSA).
3. You’re not enrolled in Medicare.
4. You’re not claimed as a dependent on someone else’s tax return.

One more “catch”: You can’t contribute unlimited amounts. The IRS sets a cap on how much you can contribute to your HSA. This limit includes contributions made by both you and your employer.

For example, if your 2024 HSA limit is $4,150 and your employer adds $1,000, you can only contribute $3,150. However, if you’re 55 or older, you can also make an extra $1,000 catch-up contribution.

2024 HSA Contribution Limits

• Self-only coverage: $4,150
• Family coverage: $8,300
• Catch-up contribution (age 55+): Add $1,000

Here’s what determines how much you can contribute:

• Whether you have self-only or family health coverage
• Your age (55 or older? You get that catch-up boost!)

#4 Tax Code Updates Means More Money For Your Family  

The 2024 lifetime estate and gift tax exemption surged from $12.92 million to $13.61 million (double for married couples). This shields most people from having to pay federal gift tax.

But if you DO have to pay … For 2024, the annual gift tax limit is $18,000. ( up $1,000 from 2023 since the gift tax is one of many tax amounts adjusted annually for inflation.)

That means you can give your child $18,000 (or $36,000 for couples) to each child, grandchild, or person without filing taxes on the gift.

Key Takeaways

No one wants to think about paying taxes before taxes are due. But, you should plan to keep more money in your pocket and out of Uncle Sam's coffers. 

To hold onto your nest, you must stay abreast of the tax code updates that may affect you in 2025. 

Some critical updates that may affect you as a real estate investor include the changes to:

• Tax brackets
• Standard deductions
• HSA contributions
• Lifetime estate and gift tax exemption  

Despite campaign promises, Congress changes the tax code—not the president.

And given the current political climate, we can expect legislative debate when the Tax Cuts and Jobs Act sunsets at the end of 2025.

Still, Kamala Harris has supports changing the way capital gains are taxed, so I’d like to talk about how those changes affect us as investors.

As a reminder, capital gains tax is applied to the profit earned when an asset, such as stocks or property, is sold at a higher price than it was originally purchased. This tax primarily affects middle- to high-income earners who have investments in various assets. 

Under current tax policies, capital gains are taxed only when gains are "realized" — that is, when the asset is sold and the profit is confirmed.

For American W2 employees and 1099 earners with high incomes, this tax represents a critical component of financial planning. Avoiding a significant tax bill when liquidating assets is crucial to building and preserving wealth.

Expected Capital Gains Tax Rates for 2025

Under Kamala Harris’s tax proposals, the capital gains tax landscape will shift substantially for high-income earners. A new long-term capital gains rate of 28% could apply to individuals earning over $1 million annually. This adjustment is a significant increase from the current top rate of 20%, making it more important than ever for high-income earners to understand how to use legal structures to protect their assets. 

Harris's Broader Economic Goals and Tax Policy Objectives

Harris’s tax policy proposals aim to generate revenue for social programs, promote wealth redistribution, and stimulate the economy for low- to middle-income families. These objectives are part of a larger fiscal policy effort to address wealth inequality and expand benefits for working families.

To fund these initiatives, the plan includes raising corporate and high-income individual taxes. The proposed policies align with Harris’s broader economic vision of using tax policy as a tool to level the economic playing field while still promoting growth through targeted credits and exemptions.

Key Capital Gains Tax Changes for High-Income Earners

Increased Taxes on Capital Gains for the Wealthiest

For those with an annual income over $1 million, the proposed capital gains tax rate would rise to 28%, marking one of the highest rates in recent history. This change would specifically impact high-income households, making it important for these earners to plan around the new rate. Harris also supports raising the net investment income tax (NIIT) from 3.8% to 5% for top earners, increasing the overall tax burden on investment income.

Introduction of a Minimum Tax on High-Net-Worth Individuals

A significant component of Harris’s proposal includes a 25% minimum tax on ultra-high-net-worth individuals with over $100 million in assets, covering both realized and unrealized gains. This policy focuses on wealth accumulation that may otherwise escape taxation under traditional income tax structures. While some experts express concerns about the technical aspects of taxing unrealized gains, Harris argues it is a necessary step toward addressing economic inequality.

Corporate and Business Tax Adjustments

The Harris tax plan also targets corporate taxation. Her proposal includes raising the corporate income tax rate, increasing taxes on stock buybacks, and expanding global intangible low-taxed income (GILTI) regulations. These measures aim to ensure that corporations contribute their fair share, offsetting the high-income earners’ tax relief while preventing tax avoidance by companies with substantial foreign earnings.

These changes could indirectly affect high-income individuals who rely on dividend-paying investments. Understanding the full impact on corporate taxation is key for those in high income brackets, as adjustments could influence corporate profits, stock valuations, and, consequently, the value of investment portfolios.

Changes in Inheritance and Estate Tax Policies

Harris proposes changes to the treatment of unrealized gains upon inheritance. The current “step-up in basis” provision, which allows inherited assets to be valued at their current market price (thus avoiding capital gains tax), would be adjusted. 

Under the Harris plan, unrealized gains would be subject to taxation at the time of inheritance, potentially reducing the wealth passed down and increasing tax liabilities for beneficiaries.

For estate planning purposes, high-net-worth individuals may need to reassess how they transfer assets to future generations. The policy is aimed at ensuring that large estates contribute more in taxes, though it includes exemptions for smaller estates.

Expanded Tax Credits and Social Incentives

Aside from changes to the way capital gains are taxed, Harris is proposing the following tax changes:

Increased Child Tax Credit (CTC)

Harris plans to expand the Child Tax Credit (CTC), particularly for families with newborns. This increase is part of a broader effort to support low- and middle-income families. For high-income earners with children, these expansions could provide additional tax benefits.

Permanent Earned Income Tax Credit (EITC) Expansion

Harris proposes a permanent expansion of the Earned Income Tax Credit (EITC), which primarily benefits low-income workers, particularly those without children. While this credit is not targeted at high-income earners, it represents a shift toward policies that support economic security for a broader population.

First-Time Homebuyer Credit

A tax credit for first-time homebuyers is also on the table, aimed at assisting new homeowners in building equity and long-term wealth. This incentive aligns with Harris’s broader economic goals by enabling more Americans to build financial security through homeownership.

Projected Economic and Revenue Impact of the Harris Plan

Nobody has a crystal ball, but we can make some educated guesses about how these changes might affect our investment strategies as well as the economy overall:

Economic Growth Concerns

The proposed increases in capital gains and corporate taxes may slow economic growth in the short term. Economists project a possible decrease in GDP and employment as a result of higher costs for businesses. However, Harris’s team argues that the benefits of redistributing wealth and funding social programs will outweigh these impacts over time.

Revenue Projections and Impact on National Debt

Harris’s tax plan is projected to generate $4.1 trillion in revenue over a decade, even after accounting for various tax credits. This revenue is critical for funding the proposed social programs and reducing the federal deficit. However, the expected economic slowdown could partially offset these revenue gains, resulting in a net revenue increase of approximately $642 billion over ten years.

Challenges and Criticisms of Harris’s Capital Gains Tax Proposal

Some critics argue that higher capital gains and corporate tax rates could reduce the U.S.’s global economic competitiveness. Increased taxes on corporations could lead some companies to relocate or adjust their structures to mitigate tax impacts. This potential decrease in competitiveness is a concern for both policymakers and high-income earners who rely on corporate investment returns.

The introduction of new taxes, including those on unrealized gains, make an already intricate tax code even more of a headache. High-income individuals may face increased compliance costs and administrative burdens. 

Those in high-income brackets will need to work closely with tax professionals to ensure compliance and optimize tax strategies.

Harris’s plan aims to reduce the federal deficit, but the projected economic slowdown and potential job losses could undermine these goals. Balancing revenue generation with economic stability remains a challenge, and it is uncertain how these policies will affect the deficit long-term.

Capital Gains Tax Strategies for High-Income Earners

Offsetting Gains with Losses

One of the most effective strategies for managing capital gains tax is to offset gains with losses. High-income earners can strategically sell underperforming assets to offset gains, reducing their tax liability. This approach is known as tax-loss harvesting and can be especially beneficial under higher capital gains rates.

Leveraging Tax-Advantaged Accounts

Using tax-advantaged retirement accounts like IRAs and 401(k)s can defer or minimize capital gains tax. By holding investments within these accounts, you can avoid immediate capital gains taxes, allowing your investments to grow tax-free or tax-deferred until retirement.

Working with Financial Professionals

Navigating these new tax policies will require careful planning. High-income earners should consult with tax professionals to identify the best strategies for minimizing capital gains taxes and maximizing after-tax returns. 

Proper planning can help you align your investment strategy with your financial goals while staying compliant with evolving tax laws.

Conclusion: Harris’s Balance Between Revenue and Economic Growth

Kamala Harris’s capital gains tax proposal represents a significant shift in how investment income could be taxed in the future. By targeting ultra-high earners and large estates, her plan seeks to balance revenue generation with social equity. However, these changes introduce new complexities and challenges for high-income earners.

As the 2024 election approaches, understanding these potential tax changes is crucial for those seeking financial freedom and long-term wealth. With careful planning and a proactive approach, high-income earners can adjust their strategies to adapt to the new tax landscape.

For high-income W2 earners, Cash Flow Deals and Depreciation Deals are powerful tools to maximize tax savings, supplement income, and build wealth.

You need to make an informed decision about your path to financial freedom. So let’s get things going ….

Cash Flow Deals: Steady Income and Tax Benefits

“Cash flow deals” are investments that provide regular income. 

“Duh,” right?

But here’s the thing to know: They don’t inherently provide tax benefits. 

That said, when they are used in conjunction with a Private Foundation, they can become highly effective. This strategy is ideal for those looking to replace active income with passive streams, leveraging the Private Foundation to shelter earnings and grow wealth

Royal Legal Solutions helps you navigate these strategies to decrease your tax burden. We’ll show you how to use them in tandem. Once we set everything up, the foundation gives you initial tax savings, while cash flow deals give you high-yield returns (and no capital gains tax).

Cash flow investments are awesome for W2 earners looking to ditch their full-time jobs or generate passive income. These deals include heavy machinery, forex trading, and algorithmic trading. 

A $100k investment in a cash flow deal could potentially return $30k annually, paid out in installments..

Depreciation Deals: Reducing Taxes and Building Wealth Efficiently

Depreciation deals leverage investments that allow accelerated bonus depreciation, reducing taxable income immediately. These deals come in different types:

• Real Estate Investments: Multi-family properties or leveraging short-term rental loopholes are popular options. However, you typically need to be a real estate professional to fully benefit from these tax breaks.
• Energy and Equipment Investments: Car washes, energy projects, or equipment allow investors to claim depreciation benefits without requiring real estate professional status.
• RV and Mobile Home Parks: Investing in these assets qualifies you as a real estate professional and opens up a wider range of tax-saving opportunities. They also allow for larger investment amounts.

Depreciation deals offer substantial tax savings and help build net worth, making them a strategic option for those needing to offset high W2 income. Typically, these investments are held in your personal name to take full advantage of the depreciation benefits.

Balancing Cash Flow and Depreciation for Optimal Tax Savings

The best approach often depends on your financial goals:

• If Immediate Cash Flow is a Priority: Combine cash flow deals with a Private Foundation to maximize immediate income without additional tax burdens.
• If Tax Savings and Long-Term Wealth Building Are Priorities: Focus on depreciation deals, which allow substantial tax deductions and efficient net worth growth.

To maximize savings, it is often recommended to max-fund a Private Foundation first and then explore additional investments in cash flow and depreciation deals for layered benefits.

Finding the Right Mix For You

The right blend of cash flow and depreciation deals depends on your financial goals and tax situation. By leveraging these strategies, W2 earners can significantly reduce taxes, build wealth efficiently, and create a pathway to financial freedom. 

Consulting with a financial advisor or tax professional can help tailor the right mix of investments to meet your specific needs and objectives. Royal Legal Solutions will help maximize your tax savings and investment ROI. We do that by modeling scenarios, forecasting how different types of investments can impact your bottom line. 

Royal Legal does not offer, underwrite, or recommend deals, operators, or deal clubs. We do not take a cut or get a kickback from any third-party deals.

Our clients are responsible for underwriting their own deals and investing their own money. YOU are responsible for deciding which strategies to implement. We provide access to a curated list of deal clubs and investment opportunities, but you are still responsible for your own due diligence.

Have questions? We’ve got answers. But first we’ll need to learn about  your situation and goals. We will help you model how different types of tax shelters and investment options impact your bottom line, and from there you can decide what best fits into your lifestyle.