Tax Planning

  1. In 1934, Justice Learned Hand, in a Supreme Court decision, stated: “Any, one man can so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay to Treasury; there is not even a patriotic duty to increase one’s tax”.
  2. Tax Case Studies

Paying Large Tax Liability

Issue: Client came to the Gordon Law Group because of concern that he will pay a lot of income tax in the current year due to the projected taxable income of $2,500,000. The client was also concerned about his estate tax liability upon death because he had used up both his annual gift exclusion for the year and his lifetime gift tax exemption.

Resolution: Gordon Law Group recommended the use of a CLAT (charitable lead annuity trust) which resulted in 30% of the funds expended going to charity with the after-tax cost being-0-because of the tax savings.

The other 70% of the funds contributed to the CLAT were gifted into a trust for the benefit of the client’s family and was no longer part of the client’s taxable estate without having to use the annual gift exclusion or lifetime exemption because it was gifted as a remainder interest from a charitable trust.

Thus, instead of the client paying fifty percent (50%) of his income as taxes to the Federal and State governments, he paid-0-to the government, 30% to charity, and 70% to his family resulting in an increase in the family’s wealth.

As attorneys and CPAs, we provide high-earning and high networking individuals with income tax and estate tax savings strategies, which are different from what is known to most tax professionals. Our unique knowledge is due to our long-term experience and extensive background to provide tax savings advice, and we do not attempt to replace existing tax professionals.

Our tax savings strategies typically impact individuals with an annual income of $2,000,000 or more and a minimum net worth of $20,000,000.

Many of the strategies can be suited for one­ year saving. Thus, if an individual realizes large income for a single year (such as from the sale of a business), our strategies can provide significant tax savings for that year alone.

As an example, one such strategy can serve to provide multiple benefits in the form of:

  • Making a large charitable contribution with the cost fully funded by income tax savings;
  • Making a large a gift to a family without being subject to gift tax and, at the same time, increasing family wealth;
  • And allowing for a tax-free conversion of an IRA to a Roth plan so that there is no resulting required minimum distribution (“RMD”) and all subsequent plan distributions are not subject to income tax.
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