With the year-end in sight, I am watching my income and calculating taxes due next April.
Alongside the calculations, I am exploring strategies and investments that reduce top-line
reportable income and remove Alternative Minimum Tax while potentially providing future cash
flow.
Along with multiple tax code rules, the investment structure and asset class play a significant
role in individual taxpayers taking advantage of each item. Often structured as partnerships,
most private placements provide pass-through taxation. This mechanism allows investors to
deduct depreciation. The Internal Revenue Code codifies other transactions allowing direct
deductions on income.
Taxes should never dictate your investment decision. Any investment strategy should be able
to pass muster on its own merits. When a solid investment offering provides tax advantages,
net results (total return, reduced income tax liability, etc.) can be substantial. So, why would you
not utilize tax benefits in an already sound investment?
Securitized investments have made it easier for investors to employ tax strategies when they do
not have personal experience or time to structure the desired outcome. Advantage Wealth
Solutions remains focused on helping investors combine tax strategy and investment
opportunities. Your opportunity to create significant savings for this year expires on 31
December, so act today to keep more of what you worked for.