Video: https://www.youtube.com/watch?v=yAa-SWxQ3FY

Business Strategies and Depreciation (0:01)

- Discussed cost segregation, bonus depreciation, and Section 179 as key strategies.

- Bonus depreciation allows full write-off for assets under 20-year life, but has restrictions like vehicle weight.

- Section 179 is more surgical, allowing selective asset write-offs but cannot create a loss.

Short-term Rental Tax Benefits (3:45)

- Short-term rentals (average stay 7 days or less) can be classified as a trade or business.

- Material participation is required; 100 hours more than others is a common test.

- Allows use of cost segregation and bonus depreciation to create paper losses against other income.

Oil and Gas Investment Deductions (7:30)

- Investments in working interest of oil operations offer significant deductions.

- Intangible drilling costs allow for upfront deductions; depletion deduction on royalties.

- Effective for high-income individuals seeking non-passive ordinary income offsets.

Health Savings Accounts (HSAs) (10:25)

- HSAs offer pre-tax deductions for medical expenses and grow tax-free.

- 2025 limits: $4,300 for individuals, $8,500 for families, with additional catch-up contributions.

- Requires a high deductible health plan; funds can be used tax-free for healthcare expenses.

Donor-Advised Funds and Charitable Giving (12:45)

- 2025 last year for advantageous charitable giving without a floor or cap.

- Donate appreciated assets for deductions at fair market value.

- Qualified charitable distributions from IRAs for over 70.5-year-olds.

Retirement Plan Contributions (16:00)

- Employee contributions to IRAs and 401(k)s must be made by year-end.

- Employer contributions can be made until tax filing deadline.

- Defined benefit plans can also be funded up to tax return filing.

Accountable Plan Reimbursements (19:00)

- Allows tax-free reimbursements for employee expenses by the company.

- Must be in writing and reimbursed before year-end.

- Applies to home office, corporate meetings, and equipment expenses.

Stock Loss Harvesting (22:00)

- Use carryover losses to offset capital gains and reduce taxable income.

- No wash sale gain rule, so gains can be captured tax-free.

- Strategy involves selling at a loss and buying back with an option workaround.

Paying Children and Gifting Strategies (25:00)

- Pay children through sole proprietorships or partnerships for tax-free income up to $15,750.

- Avoid employment taxes in certain business structures.

- Gift appreciated assets to utilize children's lower tax rates.

Tax Bracket Management (29:00)

- Focus on keeping income in lower tax brackets by using deductions and credits.

- Avoid phase-outs and maximize 199A deductions.

- Roth conversions should consider expected future tax brackets.