Tax Efficiency & Management

Tax Efficiency and Management | Abundance Wealth Solutions

Helping Our Clients Maximize Their Investment, Retirement, and Overall Tax Efficiency

For business owners, delayed tax planning can mean leaving substantial savings on the table. The longer you defer, the greater the tax burden you’ll face—money that could have been reinvested in your business, grown through compounding, or passed on to your family.

Effective tax planning not only preserves your wealth but also helps mitigate future tax consequences for your heirs. Strategic planning ensures that your legacy is passed down efficiently, without unnecessary erosion from taxes.

Our Tax Planning Solutions

We specialize in long-term, proactive tax strategies, designed specifically for high-net-worth individuals, business owners, retirees, and families. Our approach isn’t limited to filing season—it starts long before any taxable events occur, sometimes even before key investment decisions are made. Here’s how we can help:

  • Investment Tax Strategies: Whether you're investing with pre-tax dollars or post-tax income, the way you allocate your assets can significantly impact your tax liabilities. We’ll guide you through various options, helping you choose strategies that balance growth with tax efficiency.
  • Income Structuring: Different types of income—such as dividends, capital gains, annuities, inheritances, and employer benefits—carry distinct tax implications. We’ll help you plan for each income source in a way that minimizes your overall tax burden, both before and during retirement.
  • Social Security and Medicare Taxation: As you approach retirement, proper planning can help reduce the taxes on your Social Security benefits, which can become taxable based on your income level. Additionally, for high-income individuals, the Medicare IRMAA (Income-Related Monthly Adjustment Amount) can increase your Medicare premiums. Our strategies can help mitigate these potential costs by managing your income levels and withdrawals in a tax-efficient way.
  • Required Minimum Distributions (RMDs): Once you reach age 73, you're required to start taking distributions from traditional IRAs and other tax-deferred accounts. If not properly planned, large RMDs can push you into higher tax brackets, impacting other benefits like Social Security. We’ll help you strategically manage your withdrawals to minimize tax consequences.

  • Estate Tax Mitigation: A well-structured estate plan is essential to protect your wealth from excessive taxation. We’ll work with you to minimize the tax impact on your estate, ensuring that future generations can benefit from your legacy without facing undue tax consequences.

     

Opportunity Zones

A DST allows a client to sell a highly appreciated piece of real estate without having to pay the capital gains tax, while also investing into another professionally managed property (with no work or stress involved) - and actually get “paid” an income too! (For example, selling a vacation home or secondary residence at a HUGE gain, not pay the tax, and instead get paid (hopefully appreciating in value too) without incurring the capital gains tax!)
 
An Opportunity Zone investment can do the same thing for highly appreciated stocks, a business, cryptocurrency, even artwork! They can “sell” and NOT pay the tax, yet get into something professionally managed with no to low stress! (With income and growth opportunities). 
 
Qualified Opportunity Funds are a unique tax vehicle that combines the powerful benefits of tax-deferral, tax-free growth, and tax-free income. I don’t know of any other strategies that combine all 3. If you have incurred a capital gain after selling a highly appreciated asset, you may want to look at a QOF to potentially mitigate some of the tax consequences associated with the sale and potentially increase overall after-tax return for the near future. The sale of any type of asset works, including:
  • Real estate—investment properties or personal residences
  • Stocks, ETFs, Mutual Funds
  • Cryptocurrency
  • Businesses
  • Artwork
  • Cars
  • Etc.
     
Benefits of Opportunity Zones:
  • Sizable Tax Advantage: Opportunity Zones offer tax benefits to investors who elect to defer tax on capital gains if they timely invest those gain amounts in a Qualified Opportunity Fund
  • Benefits Communities: This option delivers invaluable resources to economically struggling communities that need it most, contributing to the area’s growth.
  • Broad Investment Criteria: You can defer taxes on capital gains from several asset classes such as: multifamily, self-storage, hospitality, diversified portfolios + more.

How it Works:
  • Defer Capital Gains Taxes: Taxpayers can get capital gains tax deferral (and more) for making timely investments in qualified opportunity funds.
  • Invest In Real Estate: Qualified opportunity funds invest in qualified opportunity zone properties. 
     

Donor Advised Funds

A Donor Advised Fund can be utilized to help clients make tax deductible contributions to any publicly registered 5013c. These can be utilized to reduce/offset capital gains, reduce your income taxes, and can be positioned to reduce or offset capital gains from highly appreciated assets, such as stock sales, a business sale, real estate gains, even private stock sales, collectibles, and cryptocurrency. 
 

Securing Your Financial Future

Leaving a lasting legacy means planning for the future today. Our team of tax specialists will help you create strategies that reduce the burden of taxes on your heirs, maximizing the wealth you pass down to future generations. The earlier you start, the more effective your plan will be.

Let us help you navigate the complexities of tax planning, so you can focus on what matters most: enjoying the wealth you’ve worked so hard to build and securing your financial future for generations to come.

Ready to take the first step in minimizing your taxes?

Let’s Get Started