Infinite Wealth Builder

Tax Alpha

Proactive Strategies for Wealth Optimization

Your CPA files accurate returns. But do they optimize your tax position proactively? Tax Compliance looks backward. Tax Alpha creates value before the event.

37%
Top Federal Rate
$3,570
Avg Tax-Loss Harvest Savings
20%
QBI Deduction
0%
QOZ Appreciation Tax (10yr)

The Difference Between Compliance and Alpha

Beyond Basic Tax Planning

Tax Compliance

  • File accurate returns
  • Maximize standard deductions
  • Record what happened

Tax Alpha

  • Proactive strategy execution
  • Multi-year optimization
  • Coordinate all accounts
  • Create value before events

Tax Alpha: Proactive strategies that create value—not just record what happened.

Know Your Rates

CategoryRate RangePlanning Impact
Ordinary Income10-37%Conversion decisions, income timing
Long-Term Capital Gains0-20%Asset location, holding periods
Net Investment Income Tax3.8%AGI management for high earners
State Income Tax0-13.3%Residency planning, asset location
Estate Tax40%Transfer strategies, exemption planning

Specialized Strategies for Your Situation

Tax Alpha by Client Type

🏢

Business Owners

$250K-$5M+ Revenue

  • Entity structuring (S-corp, C-corp)
  • IWB Business Accounting
  • IWB Strategic CFO
  • IWB Elite Tax Planning
  • Exit planning integration
Learn More →
💼

High-Income W-2

$150K-$500K+ Income

  • NOL solar depreciation strategies
  • Mega backdoor Roth
  • Roth conversion ladders
  • FIRE movement tactics
  • Section 7702 integration
Learn More →
📈

Capital Gains Events

Business Sales, Real Estate, Investments

  • 537 Installment Sale Trust
  • 1031 exchange alternatives
  • Depreciation recapture planning
  • Charitable remainder trusts
  • Qualified Opportunity Zones
Learn More →

Seven Advanced Tax Strategies

STRATEGY 1

Roth Conversion Optimization

Convert traditional IRA/401K to Roth IRA—pay taxes now for tax-free growth forever.

"Fill the Bracket":

Convert exactly enough to reach the top of your current bracket without jumping to the next.

Common Windows:

• Age 55-62: Early retirement before SS
• Age 62-70: After retirement, before RMDs
• Sabbatical or business loss years

STRATEGY 2

Tax-Loss Harvesting

Sell investments at a loss to offset gains, then reinvest in similar (but not identical) assets.

The Rules:

  • Losses offset gains dollar-for-dollar
  • Excess losses offset $3K ordinary income
  • Remaining losses carry forward indefinitely
  • 30-day wash sale rule applies
STRATEGY 3

HSA Triple Tax Advantage

Health Savings Accounts offer tax deduction, tax-free growth, AND tax-free withdrawal.

The Advanced Strategy:

  1. 1. Contribute maximum each year
  2. 2. Pay medical expenses out-of-pocket
  3. 3. Keep all receipts
  4. 4. Let HSA compound for decades
  5. 5. Reimburse yourself later tax-free
STRATEGY 4

Entity Structuring

For business owners earning $100K+, S-corp structure can reduce self-employment taxes.

Example:

Business earns: $300,000

W-2 salary: $150,000

Distribution: $150,000 (no SE tax)

Savings: ~$22,950 in SE taxes

STRATEGY 5

Qualified Opportunity Zones

Invest capital gains in designated areas for significant tax benefits.

The Benefits:

  • Defer original gain until 2026
  • Basis step-up reduces original gain
  • If held 10+ years, NO tax on appreciation

Caution: Not all QOZ funds are created equal—due diligence required.

STRATEGY 6

Charitable Planning

Beyond simple donations: Donor Advised Funds, bunching strategy, QCDs, Charitable Remainder Trusts.

Bunching Strategy:

Bunch 2-3 years of donations into one year. Itemize that year, standard deduction other years. Same total giving, more tax benefit.

STRATEGY 7

Retirement Account Optimization

Different account types should hold different assets based on tax treatment. Withdrawal sequencing in retirement affects total taxes paid.

Account TypeBest ForWhy
Taxable BrokerageTax-efficient index funds, munisBenefit from lower LTCG rates
Traditional 401K/IRAHigh-growth assetsDeferral maximizes compounding
Roth 401K/IRAHighest expected growthTax-free growth on biggest gains
HSAMost aggressive allocationTriple tax advantage

Tax Alpha by Profession

✈️

Pilots

  • Roth conversion during career breaks
  • HSA optimization
  • Section 7702 for tax-free retirement
⚕️

Physicians

  • Backdoor Roth for high earners
  • Mega backdoor Roth if 401K allows
  • QBI deduction optimization
🏢

Business Owners

  • Entity structure optimization
  • Cash balance plan for high deduction
  • QOZ for business sale gains
🏠

Real Estate

  • Cost segregation for depreciation
  • 1031 exchange alternatives
  • Passive loss strategies
🎯

Near-Retirees

  • Roth conversion windows
  • RMD minimization
  • Medicare premium planning

Common Questions

Not always. Convert when current rates are lower than expected future rates. If you expect to be in a lower bracket in retirement (unusual for high earners), deferral may still win.
For portfolios over $500K, absolutely. The tax savings compound over time. For smaller portfolios, focus on other strategies first.
It depends on income level, state taxes, benefits needs, and exit plans. S-corp often wins for $100K-$500K businesses. Higher earnings may favor C-corp in some cases.
Only if the underlying investment makes sense on its own merits. Tax benefits don't turn a bad investment into a good one. Due diligence is critical.
You need a team: CPA for compliance, tax strategist for planning, estate attorney for legal structures, and wealth architect to coordinate. Most people have only the first one.

Your Next Step

Get your Tax Strategy Audit—we'll review your current situation and identify optimization opportunities. See how much you could convert in your current tax bracket. Discover tax-free growth strategies beyond IRAs and 401Ks.