I just got off the phone with a client, who has a problem, according to him. The guy usually makes ~$250,000 but this year he’s going to pull in about 1MM and wants to leverage the tax code to his favor. His accountant told him to buy a house and the client told him to go f#@ himself. Now that his accountant is out of the picture, he’s come to us to come up with some strategies to reduce his tax bill. If his income was consistently that high we could consider a captive insurance company, but he doesn’t think he can maintain that seven figure income in the future. We tossed around the idea of a defined benefit or deferred comp arrangement, but he’s a little gun shy. His company is a small S-Corp, 3 people, one of which is his wife. What are some strategies used to lower the tax bills of the $1MM+ crowd besides the usual?
A few thoughts off the top of my head…these may or may not make sense for your guy: Swiss bank account Fake his own death embezzlement take out $1mm insurance on his wife then kill her after April 15th