White Coat Investor Podcast WCI #353: Lesser Known Tax Strategies
Feb 8, 2024
In this podcast, Alexis Gallati of Cerebral Tax Advisors discusses controversial tax deductions such as land conservation easements, captive insurance companies, self rentals, employing your spouse or children, and cost segregation studies. The hosts emphasize the importance of caution and qualification when utilizing these deductions. They also touch on topics such as tax loss harvesting, setting low salaries for S Corps, and the role of whole life insurance as a tax mitigation strategy.
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Use The Augusta Rule Properly
- Use the Augusta 14-day rule to rent your primary home to your business for short events and avoid personal tax on that income.
- Document comparable rates and only charge reasonable prorated space to avoid auditor pushback.
Hire Kids With Real Jobs And Paperwork
- Employ children legitimately and document hours, duties, payroll, and a separate bank account to shift income into lower brackets.
- Avoid inflated salaries or nonexistent duties and use payroll (W‑2) to prevent self-employment tax issues.
Hire Spouse Only With Genuine Work
- Employ a spouse only for legitimate work and to gain retirement access, and treat them like any other employee.
- Compare payroll taxes versus retirement benefits and watch effects on any state or Social Security benefits.