W-2 Earner Comprehensive Tax Planning,

$3, 995

Includes:

  • Unlimited emails for one year

  • 3 Meetings:

    • Initial 45-minute video, fact finding meeting

    • One check-in video meeting

    • End of year Tax Planning video Meeting

  • Review of prior year returns to search for opportunities

  • Personalized Tax recommendation letter

  • Personalized recommendations and referrals to trusted network of advisors

  • Personalized Tax projections

Case Study 1: Short- term rental Strategy

Emma and Jake, a married couple filing jointly, earn a combined W-2 income of $500,000 and want to invest in a short-term rental (STR) for both passive income and tax benefits.

As high-income earners, they are subject to:
Federal income tax at 35% (top marginal rate)
Net Investment Income Tax (NIIT) of 3.8% on passive income
Potential state taxes

They want to secure a $100,000 tax deduction in Year 1 using cost segregation and bonus depreciation under 2025 rules.

The Short-Term Rental (STR) Strategy:

  • They purchase a $600,000 STR

  • They furnish it for $50,000

  • They actively manage the property (qualifying as a non-passive activity)

  • They conduct a cost segregation study to accelerate depreciation

Key Tax Planning Strategy:

  • Since Emma and Jake do not qualify as real estate professionals (REPS), normal long-term rental losses would be suspended due to passive activity loss (PAL) limitations.

  • However, STRs are exempt from these rules if they meet material participation tests.

Cost Segregation & 2025 Bonus Depreciation

A cost segregation study accelerates depreciation by categorizing assets as:
Personal property (e.g., furniture, appliances, carpets) → 5-year life
Land improvements (e.g., landscaping, driveway) → 15-year life
Building structure → 27.5-year life

Cost Segregation & 2025 Bonus Depreciation (40%)

A cost segregation study accelerates depreciation by categorizing assets.

Bonus Depreciation Rules in 2025

  • In 2025, bonus depreciation is 40%

Using a cost segregation study:

  • $600,000 property (excluding $120,000 land) → $480,000 depreciable basis

  • Cost segregation allocates ~30% to 5 & 15-year property → $144,000

  • Bonus depreciation (40% in 2025) on $144,000 = $57,600

  • Furniture ($50,000) → Bonus depreciation of $20,000

Total First-Year Depreciation Deduction:

57,600+20,000=77,600

Since they have $22,400 in additional regular depreciation from the remaining 5-year and 15-year assets, the total depreciation is $100,000, which is fully deductible against W-2 income due to STR being classified as a non-passive activity.

Projected federal tax savings= ~$ 35k

Case Study 2: Investment funds & Charitable Planning

Alex and Taylor, a married couple filing jointly, earn $400,000 per year from W-2 salaries and other income sources. They are in the 32% federal tax bracket and live in a state with a 5% income tax. They want to:

Reduce taxable income using strategic tax planning
Invest $50,000 in an oil & gas partnership for up-front tax benefits
Donate $30,000 in appreciated securities to a donor-advised fund (DAF).

Tax Strategy #1: Investing in Oil & Gas ($50,000 Investment)

Oil and gas investments offer a unique tax benefit—a portion of the investment qualifies for an intangible drilling cost (IDC) deduction in Year 1.

Key Tax Benefit:

  • Typically, 75% to 85% of the investment can be deducted as IDCs in the first year.

  • Assuming 80% IDCs, Alex and Taylor get an immediate deduction of $40,000 in 2025.

  • This deduction directly reduces their taxable income.

Federal tax savings (32% bracket):

$40,000×32%=12,800

Total tax savings from oil & gas investment = ~$12,800

Long-Term Benefit:

  • Future income from the oil & gas investment is taxed at ordinary rates.

  • However, a portion qualifies for depletion deductions, reducing future tax liability.

Tax Strategy #2: Donating $30,000 in Appreciated Securities to a Donor-Advised Fund (DAF)

Instead of donating cash, Alex and Taylor donate $30,000 of long-term appreciated stocks to a Donor-Advised Fund (DAF).

Key Benefits:
Avoids capital gains tax on the appreciated securities
Receives a full charitable deduction for the fair market value

Assuming the stocks had a cost basis of $10,000, the embedded gain is $20,000.

Capital gains tax avoided (20% federal + 3.8% NIIT + 5% state tax):

$20,000× (20%+3.8%+5%) = $5,760

Federal tax deduction (32% bracket):

$30,000×32%=$9,600

State tax savings (5%):

$30,000×5%=1,500

Total tax benefit from DAF donation = $16,860

Combined Tax savings = ~$31,660