Reducing Your Taxable Income in 2023

By now, you’ve probably received your W-2 and 1099 forms …

Which can only mean one thing: tax season is officially here.

It’s a crucial time for all taxpayers… but especially their hard-working CPAs!

“Nothing is certain except death and taxes” — this famous quote originated in 1789 from one of America’s founding fathers, Benjamin Franklin.

Over 200+ years later, it’s still true.

We always hear criticisms of our progressive, net-income tax system coming from “both sides” of the political spectrum… but here’s a perspective that we don’t talk about often enough.

The U.S. Tax Code is an Incentive System

It’s a set of rules and regulations that promote certain outcomes by providing incentives. This isn’t not a liberal or a conservative position.

In fact, the basic concept of using the Tax Code to incentivize people is basic to most political agendas, regardless of the party.

Incentives encourage taxpayers to put their time, effort, and resources towards activities that would contribute to the growth of our economy.

These activities are designed to support the following economic functions:

1. Provide housing and real estate for businesses to thrive;
2. Secure adequate supplies of energy — think oil and gas development, solar, wind, and electric car incentives;
3. Provide jobs — consider all of the deductions that businesses get that employees don’t.

Let’s get into the last point, as you’re preparing to pay taxes and probably wishing that you had more deductions.

(Read until the end and next year’s tax season might just be less painful.)

Consumers vs. Creators in the Job Market

In a capitalist system like ours, you could say that there are two types of players: consumers and creators.

Both are crucial to our economy but one is favored, tax-wise …

Individuals who are employed and self-employed are “consumers” in the job market. They provide work in exchange for compensation from companies.

Their net income is their take-home money after deductions for taxes, health insurance, and retirement contributions.

They pay taxes progressive to their income at the highest rates.

This is because through their work, they are only acting for their own benefit.

Businesses are “creators” because they provide jobs for the economy that the government could not otherwise provide for their citizens.

As an employer, they pay a much lower percentage of their revenue in taxes. That’s because they are producing products and services that our economy wants and needs.

Businesses are allowed to deduct valid business expenses from their revenue before determining how much tax to pay— remember our discussion about depreciation?

When you maintain being solely a consumer without actively putting your resources back into the economy … you might find that your disposable income isn’t quite what you expect it to be. Even after years of hard work.

This might be the case even as your salary increases… and it isn’t just inflation.

How High-Income Earners get Stuck in the “Middle”

If you are making upwards of a six-figure salary as an employee, you are going to be in a very highly-taxed tax bracket.

This is the reality of a progressive tax system. Where will you fall in 2023?

That means that even when you make great efforts to improve your work output and increase your salary, any raises might feel virtually nonexistent.

This is why so many high-income earners stay stuck in the middle class …

And it just might be the scenario you find yourself in every tax season.

You’ve maintained or increased your taxable income without finding a means of reducing your tax pay-out. So making more money isn’t quite the solution.

So how do you move away from being solely a “consumer” and instead, become a “creator” in the economy?

There is a third option: become an “investor”.

Whether you’re an employee, self-employed, or a business owner: you can be an investor

Investors are able to pay lower taxes by diverting their income to certain types of assets and activities that the government has determined as beneficial.

Most of these investments fall under the category of “real assets”,such as real estate, infrastructure, and commodities.

These businesses involve write-offs, deductions, and credits that investors are able to claim against their taxable income.

Becoming an investor, even while you’re an employee or even as a business owner, is how you can best take advantage of the Tax Code’s incentives.

This is precisely what I experienced when I sought out strategies that would help me reach my financial goals and effectively prepare me for retirement.

I too am considered to be a high-earning, W-2 through my work as a Chief Accounting Officer. I wanted to find a way to legally reduce my tax payout and convert my active income into an investment.

This is how I created retirement income with one 6-figure cash event, a Whole-Life Insurance Policy, and a Carbon Capture Investment …

I combined a future cash flow event (an expected $275,000 payout within the last 10 days of December 2021) with a new whole life policy. I then made a tax-incentivized investment in Carbon Capture that would reduce my tax payout.

This completely funded a whole life policy that can produce significant tax-free cash flow from ages 70-95. For reference, I was 57 when I developed this financial strategy and planned it out.

By 2033, at age 70, this policy will be fully funded with only one cash input from me – the $275,000 cash flow event in December 2021.

This allowed me to create $100,000 of tax free cash for each of the years aged 70 to 95 and still have a small amount of net death benefit available at that time.

As you get your affairs in order for the previous tax year …

Consider what you can do to improve your tax planning for 2023 — especially in these ongoing, uncertain economic times. These investing strategies might just be exactly what you need to protect your wealth.

If you’d like to learn about the strategies you can use to convert your active, W-2 or 1099 income into passive income investments …

Fill out our Investor Questionnaire or schedule a call with me.

This summary is for informational purposes and to gauge potential investor interest. This summary is not intended to be a securities offering of any kind. Prior to making any decision to contribute capital, all investors must review and execute all private offering documents, including the Private Placement Memorandum and its exhibits, which contains the complete information about this investment opportunity. The information contained herein is from sources believed to be reliable. However, no representation by Match Real Asset Partners, LLC, either expressed or implied, is made as to the accuracy of any information on this property. All investors should conduct their own research to determine the accuracy of any statements made.