Tax Strategy

Tax Strategy
Chances are, you’ve heard of a tax strategy, but you don’t know where to start. Just thinking about taxes might even make you nervous. Tax strategies have one over-riding objective: to increase your wealth.
As a business owner or investor, your focus is on growth. That’s where it should be. Your work is your passion, and no one is as invested in your growth as you. You want to become wealthy, secure, and financially independent.


Taxes aren't at the top of your mind unless it's time to pay them. If you're like most business owners and investors, you sometimes feel like taxes are beyond your control. This makes you worry that you’re doing the wrong thing, trusting the wrong person or wasting a lot of money.

What is a Tax Strategy?

A tax strategy is a plan of action for reducing taxes, regardless of your business or investment situation. It is more than just wishing you could pay fewer taxes. It is a strategy crafted to ethically and morally ensure you pay the least amount of tax allowable by law.


Tax strategy optimizes the way your business income and personal spending is structured. It includes analysis of how your business structure affects your payroll and income taxes, which of your expenses is deductible, and how you can most efficiently support the people and causes important to you. It will detail how you can reduce your taxes based on current tax law by maximizing your deductions based on your wealth strategy, shift income from high tax rates to lower tax rates, and maximize your tax credits.


Tax strategies are different from typical practices of CPAs. A tax strategy is a long-term vision for your financial and business future. That’s why your tax strategy should be designed for years, if not decades, ahead.


How To Create A Tax Strategy


This is a process that requires you to dream. Where are you today, and where do you want to be in the future? What does financial freedom look like for you? Most of our clients find that when they ask themselves these questions, they are able to create a path they thought was out of reach.


This goal-setting process will create your wealth vision. Why is that important? The goals you have for your wealth — your business and investments — shape your future facts. These facts heavily influence your tax strategy and also provide the basis for your wealth strategy.


A successful tax strategy is designed around a holistic look at the goals you have for your business, your investments AND your family. Never settle for a tax strategy that doesn’t accomplish your goals in all of these areas.



Next, it is time to dive into a detailed review of your existing ownership structure to determine what needs to change from a tax and asset protection standpoint. Remember: If you want to change your tax, you must change your facts.


Your strategy begins with identifying the current facts about how your business and income is structured. By understanding the facts about how your business fits into the regulatory bodies of federal, state, and local entities AND how tax laws affect your bottom line and wealth, you will be able to develop goals that are identifiable and obtainable.


Did You Know That 50% of Your Tax Incentives Depend On How You Tax Your Entity?


That’s why your tax strategy MUST include an in-depth evaluation of how your business and personal tax situation is structured. After you have assessed your current entity structure, you will identify the type of entity (or entities) that you should use now and in the future, including how each should be taxed. You also will determine the state(s) in which to organize and/or register each entity for income tax purposes.


You’ll complete this step with a comprehensive entity map that will guide the rest of your strategy. This will determine where your money goes and when and how you will be able to utilize it down the road.


With an optimal entity map in place, it is time to get strategic about your tax deduction strategy. In this step, you will identify deductions you are not claiming but could be claiming.


Deductions often have a bad reputation, with many people feeling afraid to take certain deductions out of a fear that they will be a red flag on their tax return that triggers a costly and painful audit. The truth is that deductions exist to incentivize certain behaviors. They are there SO THAT YOU CAN TAKE THEM. You just need to be sure to take them properly.


It is crucial to understand how to use your existing and new entities to maximize and protect your tax benefits in your day-to-day operations. You'll pinpoint how to claim and document business and investment expenses properly.


You may find that you have expenses that you are paying for personally that, properly structured and documented, could be paid from your business or investment activities. When you do, you’ve found permanent opportunities to lower your tax payments.

Black and White WealthAbility logo

Why Do You Need A Tax Strategy?

Like every aspect of your business, your tax situation improves when you take a strategic approach. An effective tax strategy can help you shift from having taxes as one of your biggest expenses to having your taxes be one of your biggest assets. After all, every dollar you save in taxes can be reinvested in your business, real estate, stocks, or other investments.


The process of creating a tax strategy forces you to get clear about where you are financially today and where you want to be in the future. It also equips you with the techniques you can use to accelerate your progress. You’ll set up your business entities and investments in ways that best serve your goals. And you’ll save money by thinking of deductions as guidance rather than pitfalls to be avoided.


Your tax strategy should evolve over time, alongside your business and investments. It should also adjust in line with tax laws, ensuring that you are continually paying the least amount of tax allowable.


Finally, remember that your tax strategy is there to serve you and your financial goals, not to confuse or overwhelm you. A professional tax strategist following the WealthAbility® system can guide you through the process so that you can feel confident in your plans and decisions.


Tom Wheelwright, CPA

The WealthAbility® System

Founded by tax and wealth expert Tom Wheelwright, CPA, the WealthAbility® System is a proven process that permanently reduces taxes by 10% to 40% in 90 days or less. It is the result of more than 40 years of work perfecting a process that helps business owners and investors reach their financial dreams faster. It teaches people how to get clear on their financial goals, permanently reduce their taxes, and start building wealth to achieve their dreams.


Our programs and insights have helped our clients save and invest in their families, business, and employees successfully for years. There is no need to fall victim to complex taxation laws or poor tax planning. The WealthAbility® team and courses help you determine which tax strategies fit your situation and meet your needs the best.


We are focused on making sure our clients meet and exceed all federal and state governments' expectations while also exceeding what our clients thought was possible. Being a good citizen and community member does not mean you can't adhere to a profitable and lucrative tax strategy.


Most of all, we make taxes fun, easy, and understandable. We look at the whole picture when it comes to your finances and help you set up your financial future as a place you want to visit.

Tax-Free Wealth book

WealthAbility® CEO Tom Wheelwright’s best-selling book is the starter manual for understanding the power of a tax strategy to build massive wealth by permanently lowering your taxes.


Tom is a CPA, Rich Dad Advisor, Entrepreneur, and International Speaker, and his work has been featured in hundreds of media outlets, including NPR, Fox News, Forbes, Entrepreneur, The Wall Street Journal, Accounting Today, NBC News, ABC News, The Huffington Post, and more. Robert Kiyosaki, the best-selling author of Rich Dad Poor Dad, calls Tom “a team player that anyone who wants to be rich needs to add to his team.”


In its second edition, Tax-Free Wealth is a must-read for business owners and investors ready to take their finances to the next level.

Free Weekly Report

Sign up to receive our tax and wealth strategy tips right in your inbox. Consider it your weekly reminder that taxes can be fun!


The WealthAbility® Show

The WealthAbility® Show podcast with Tom Wheelwright offers insightful interviews and discussions perfect for entrepreneurs and investors ready to embrace a new approach to taxes and wealth building. Tom is an unapologetic proponent of the radical idea that you are fully capable of controlling your financial future. You — not Wall Street and certainly not the government — have a God-given right to control your money, build your wealth, and achieve your financial dreams.


Free Wealth Evaluator

We're happy to offer the use of our Wealth Evaluator. This tool helps define your wealth goals by identifying the amount, return or number of years required to reach your financial freedom.