Advanced strategies
46 plays in this category. Each one covers the mechanics, who it fits, and the estimated impact — then generates a deep dive against your own numbers.
- Advanced
Infinite Banking (Whole-Life Policy Loans)
Borrow against cash-value life insurance at guaranteed rates.
4–7% tax-free compounding + liquidity - Advanced
Oil & Gas Intangible Drilling Costs
Deduct 60–80% of working-interest investment in year 1.
30–37% of investment × marginal rate - Advanced
Captive Insurance Company
Insure your own business risks — premiums are deductible.
$500K–$1M+/yr tax deferral - Advanced
Private Placement Life Insurance (PPLI)
Hedge funds + alternative assets inside a tax-free wrapper.
20–40% lifetime tax alpha - Advanced
Charitable Remainder Trust (CRT)
Sell appreciated assets tax-free + get lifetime income + charitable deduction.
Full cap-gains deferral + charitable deduction - Advanced
Donor-Advised Fund + Appreciated Stock
Deduct now at FMV, grant to charity later — skip cap gains.
Cap gains avoided + 30–37% deduction - Advanced
SLAT (Spousal Lifetime Access Trust)
Lock in the $13.6M estate exemption before 2026 sunset.
40% estate tax on $6M+ transfer - Advanced
GRAT (Grantor Retained Annuity Trust)
Transfer appreciation to heirs with near-zero gift tax.
40% gift/estate tax on excess growth - Advanced
IDGT + Installment Sale to Defective Trust
Freeze estate value + shift appreciation with tax-free note interest.
40% estate tax on frozen appreciation - Advanced
Family Limited Partnership + Valuation Discounts
Gift business/RE interests at 25–40% discount for tax purposes.
25–40% off gift/estate tax base - Advanced
§453 Installment Sale to IDGT
Sell appreciated assets to your grantor trust — freeze estate, defer gain.
40% estate tax elimination on all future appreciation - Advanced
Monetized Installment Sale (§453)
Sell appreciated asset, get 93.5% cash now, defer gain 30 years.
30-year deferral of 20–37% cap gains on entire sale - Advanced
§7872 Below-Market Family Loans
Loan family at AFR (~4.5%), they invest at 8%+, spread grows outside your estate.
3–10% annual estate-tax-free wealth transfer to heirs - Advanced
Beneficiary Defective Inheritor's Trust (BDIT)
You're the beneficiary of a trust; assets stay outside your estate.
40% estate tax elimination + creditor protection - Advanced
Spousal Lifetime Access Trust (SLAT) Pair
Each spouse creates SLAT for the other — use both $13.6M exemptions.
$10M+ estate tax elimination (40% of $25M+ shielded) - Advanced
Rolling 2-Year GRATs
Chain short GRATs — any appreciation above ~5% passes gift-tax-free.
Transfer $1M–$100M+ appreciation gift-tax-free over 10 years - Advanced
Domestic Asset Protection Trust (DAPT)
Self-settled trust in NV/SD/DE — you're the beneficiary, creditors can't reach.
100% protection of transferred assets from future creditors - Advanced
C-Corp Accumulated Earnings Arbitrage
Trap earnings in C-corp at 21%, invest, defer personal tax.
Defer 15–24% personal tax layer indefinitely - Advanced
Intentionally Defective Grantor Trust (IDGT)
Sell appreciating assets to trust; freeze estate value.
Transfer $10M+ growth estate-tax-free - Advanced
EB-5 Investor Visa Capital
Foreign investors fund your project for a US green card.
Access sub-2% capital vs 7%+ market - Advanced
Installment Sale to Family Trust
Freeze estate; heirs pay you over decades at AFR.
Freeze estate + transfer 100% growth to heirs - Advanced
Step-Up Basis Optimization
Die with the appreciated assets; heirs get zero cap gains.
Eliminate 20–37% cap gains permanently on all appreciated assets - Advanced
§754 / §743(b) Step-Up Election
Buy into a partnership; step up your inside basis to FMV.
$50K–$500K in accelerated depreciation on step-up - Advanced
§6166 Estate Tax Installment Election
Spread estate tax on a closely-held business over 14 years at ~2%.
Preserve business; avoid 20–40% liquidity discount forced sale - Advanced
NING / DING Non-Grantor Trust
Bypass CA/NY state income tax on investment income.
6–13% state tax elimination on trust-held assets - Advanced
Mineral Rights / Royalty Acquisition
Buy oil/gas royalty interests — passive cash + depletion allowance.
12–20% cash yield with 15% tax shelter - Advanced
ESOP Sale + §1042 Rollover
Sell your C-corp to an ESOP; defer 100% of cap gains via QRP.
20–37% cap gain deferral + tax-free operating co - Advanced
Employee Ownership Trust (EOT) Exit
Sell to a perpetual trust for employees — no ESOP complexity.
Save $200K–$500K vs ESOP setup + ongoing cost - Advanced
Cook Islands / Nevis Offshore APT
The gold standard of asset protection — foreign courts don't recognize US judgments.
Effectively judgment-proof $2M–$50M+ in assets - Advanced
California Private Retirement Plan (§704.115)
Unlimited creditor exemption for CA residents on retirement assets.
Unlimited creditor protection on retirement assets - Advanced
QPRT (Qualified Personal Residence Trust)
Gift your home to heirs at a discounted valuation.
Transfer $2M–$10M home at 40–60% gift-tax valuation - Advanced
QTIP Trust + Portability Election
Married couples: preserve both estate tax exemptions + control remainder.
Preserve $13.99M additional exemption + control - Advanced
Max-Funded IUL for Tax-Free Income
Indexed Universal Life — cash value grows tax-free; withdraw as loans.
Tax-free income stream in retirement - Advanced
Carbon Credits / Regenerative Ag
Land + soil-carbon credits — new asset class with tax overlay.
$20–$100/acre/yr carbon income + tax layers - Advanced
Aircraft Leaseback + Bonus Depreciation
Buy a light jet; lease to Part 135 charter; deduct 60–100% year 1.
$500K–$5M+ year-1 depreciation on qualifying aircraft - Advanced
Rescue Capital / Distressed Sponsor Recap
Inject pref equity into a stressed deal at 15–20% pref + control terms.
15–25% IRR with senior-lien-adjacent risk - Advanced
SLANT — SLAT + NING Hybrid
Spousal access + state income-tax elimination in one non-grantor trust.
Eliminate 9–13% state tax on trust income + estate freeze - Advanced
Life Settlement / Viatical Investing
Buy in-force life policies at a discount to face — collect death benefit.
8–14% IRR uncorrelated to markets - Advanced
§338(h)(10) Election — Stock Sale Treated as Asset Sale
S-corp / consolidated-group stock sale gets asset-sale tax treatment for buyer — worth 10–20% price bump.
10–20% purchase price uplift - Advanced
§754 Election — Partnership/LLC Inside-Basis Step-Up
On partner death or interest sale, §754 election steps up inside basis to FMV — restart depreciation.
$100K–$5M+ in restored depreciation deductions - Advanced
§1042 ESOP Rollover — Sell C-Corp to Employees, Defer 100% of Gain
Sell 30%+ of C-corp stock to an ESOP, reinvest in Qualified Replacement Property, defer capital gains indefinitely.
Defer 20–37% cap gains permanently + 0% ongoing federal tax - Advanced
QSub Election (§1361(b)(3)) — Multi-Entity S-Corp Consolidation
S-corp owns 100% of subsidiary S-corp — file as one return, isolate liability across many operating cells.
Cleaner filings + isolated liability per business unit - Advanced
Family Office Management Company (§162 Deductions for Wealth Mgmt)
Post-TCJA killed §212 investment expense deductions — a family office management LLC restores them under §162.
$100K–$1M+/yr restored deductions - Advanced
§412(e)(3) Fully-Insured Defined Benefit Plan (Solo Owner)
50+ year-old solo S-corp owner deducts $200–$400K/yr into a fully-insured DB plan — catch-up on missed years.
$70K–$150K/yr tax savings - Advanced
Partnership Special Allocations (§704(b)) — Route Deductions to High-Bracket Partner
LLC-partnerships can allocate depreciation, losses, or credits disproportionately to partners — subject to substantial economic effect.
Route $50K–$500K deductions to the partner with highest marginal rate - Advanced
Personal Goodwill Allocation on C-Corp Sale (Martin Ice Cream Doctrine)
Sell your C-corp assets and allocate portion of price to your PERSONAL goodwill — capital gains, no double tax.
20–35% tax savings on goodwill portion of sale