Infinite Wealth Builder
Strategy Pillar

Tax Mitigation: Stop the IRS from Taking Your Retirement

We Specialize in Tax Elimination, Not Just Deferral

Your 'retirement savings' has the IRS's name on part of it. You just don't know how much yet. With $34+ trillion in national debt, where do you think tax rates are headed?

Calculate Your Tax ExposureSchedule Strategy Session
$34T+
National Debt
35%+
Max Combined Tax Rate
3-5 Years
Optimal Planning Horizon
$0
Goal: Tax Elimination

The Tax Mitigation Philosophy

Three Ways to Deal with Taxes

Tax Deferral

Pay later (401K, traditional IRA)

  • •Delays the inevitable
  • •Unknown future rates
  • •Forced RMDs

Tax Reduction

Pay less (deductions, credits)

  • •Temporary benefits
  • •Phaseouts for high earners
  • •Often triggers AMT

Tax Elimination

Pay never (Section 7702, Roth)

  • ✓Permanent solution
  • ✓Known outcome
  • ✓No forced distributions

We specialize in #3: Tax Elimination.

The Framework

Four Tax Mitigation Strategies

Strategy 1

Capital Gains Deferral

Defer recognition of gains over time using installment sale structures. Convert taxable installment income into tax-free wealth via Section 7702.

Best for: Business sales over $2M, real estate portfolios, concentrated stock positions
Result:

Effective tax rate approaches zero over time

Strategy 2

1031 Exchange Alternatives

Exit the 1031 treadmill without the massive tax hit. Use DST, structured installment sale, or Section 7702 conversion.

Best for: Real estate investors trapped in the exchange cycle
Result:

Liquidity without full tax hit, diversification, true passive income

Strategy 3

Depreciation Recapture Strategies

Minimize the 25% depreciation recapture tax through installment treatment, cost segregation timing, and Section 7702 offset.

Best for: Property owners facing large recapture exposure
Result:

Spread recapture over time, offset with tax-free growth

Strategy 4

Business Exit Tax Planning

Pre-exit planning 3-5 years before sale. Installment structures, ESOP exits, QSBS exclusions, and tax-free conversion.

Best for: Business owners planning exit in next 3-10 years
Result:

Save 30-50% on exit taxes vs. lump sum sale

Learn More About Capital Gains Deferral →

The Business Exit Reality

The Biggest Tax Bill of Your Life

Example: $10M Business Sale

Business Value:$10M
Basis:$500K
Capital Gain:$9.5M
Federal (20%):$1.9M
NIIT (3.8%):$361K
State - CA (13.3%):$1.26M
Total Tax:$3.5M+ (35%+)

That's $3.5+ million that could have compounded for your family for generations.

The Framework

Tax Intelligence

📊

Know Your Numbers

  • •Marginal rate
  • •Effective rate
  • •Capital gains rate
  • •Estate exposure
⏰

Understand Timing

  • •When taxes due
  • •Rate windows
  • •Distribution effects
  • •Planning windows
🔄

Consider All Options

  • •Deferral
  • •Reduction
  • •Elimination
  • •Arbitrage
🎯

Act Proactively

  • •Exit planning years out
  • •Roth conversion planning
  • •1031 exit prep
  • •Time to mature

"Exit planning must start 3-5 years before anticipated sale for maximum tax savings."

Tailored Approaches

Tax Mitigation by Profession

Airline Pilots
Roth conversion during low-income periods, Section 7702 for tax-free supplement
Physicians
Entity structuring for practice, Section 7702, practice exit planning
Business Owners
Entity optimization, exit planning 3-5 years out, QSBS planning
Real Estate Investors
1031 exit ramp, installment sale alternatives, Section 7702 conversion
Near-Retirees
Roth conversion windows, RMD minimization, Social Security timing

Questions

Common Questions About Tax Mitigation

Everything we discuss is explicitly permitted by the tax code—strategies used by wealthy families for generations.

Ask Your Question
Tax deferral postpones the bill—it doesn't reduce it. With national debt at $34+ trillion, the question isn't IF taxes will rise, but WHEN and HOW MUCH. Tax elimination locks in zero taxes forever.
Through proper structuring—installment sales, Section 7702 conversion, charitable strategies—effective tax rates can approach zero over time. The key is planning ahead.
Most CPAs focus on compliance (filing accurate returns) not tax reduction strategies. They're trained to record history, not change the future. Work with advisors who specialize in tax mitigation.
Everything we discuss is explicitly permitted by the tax code. Section 7702, installment sales, 1031 exchanges, charitable trusts—all are well-established, IRS-approved strategies.
The best time is 3-5 years before a major taxable event. The second-best time is now. Even if you're not planning an exit, building tax-free wealth compounds over time.

Ready to Stop the Tax Leak?

Calculate your current and future tax liability across different scenarios. Or schedule a complimentary strategy session to discuss your specific situation.

Calculate Tax ExposureSchedule Strategy Session