The Proven legal $10 Million Tax Free Exit Strategy - Garrett Gunderson

Garrett Gunderson, a financial entrepreneur, author, and wealth strategist, joins the Proven podcast to delve into the intricacies of financial advice, tax strategies, and wealth building for business owners. Gunderson emphasizes that true wealth is not built by sacrificing your life, but by maximizing your value and keeping more of what you earn.

The Tax Blind Spot of Entrepreneurs

Gunderson highlights a significant blind spot among entrepreneurs: their lack of understanding regarding tax strategies. Many business owners rely on CPAs or enrolled agents who act as historians, merely reporting what is owed after the fact. This reactive approach misses numerous opportunities for proactive tax planning. Gunderson stresses the importance of having a coordinated team, including an attorney, to navigate the tax code effectively. He points out that many beneficial strategies, such as Section 1202 for C corporations, which allows for substantial tax-free sales, are often overlooked due to improper entity selection or a lack of strategic advice.

He outlines a framework for effective tax management:

• The Right Team: Timely data from a CFO, controller, or bookkeeper is crucial. Without it, opportunities are missed.
• Strategist for Deductions: A strategist helps maximize tax deductions.
• Tax Attorney: Essential for classifying income, which can be a game-changer.
• Cost Segregation Engineer: For real estate owners, this specialist helps leverage bonus depreciation for significant immediate deductions.

Gunderson also shares several specific tax strategies often missed: Section 199A, a 20% deduction off the top for business owners; Section 280A(g), allowing businesses to rent a home for 14 days tax-free; and deducting home office expenses. He also mentions paying children over $15,000 per year tax-deductible to the business and tax-free to the child, and leveraging Section 132(j) to write off maintenance for amenities made available to employees (including family members who are employees).