As the year comes to a close, many high-income earners start thinking about how much they’ll owe in taxes. The reality is that the higher your income, the higher your tax burden, but with the right planning before December 31, you can take steps to significantly reduce what you owe.
In a recent Snapback CPA Podcast, Steven Gabrielsen, CEO of Creative Advising (Snapback CPA), sat down with Jarrod Fassio, Senior Mortgage Lender, to discuss three proven strategies that can help high earners make smarter year-end moves and keep more of what they earn.
1. Choose the Right Business Structure
Your business entity type can make a huge difference in how much tax you pay. Whether you’re operating as an LLC, S-Corp, or C-Corp, the right structure depends on your income level, the nature of your business, and how you pay yourself.
S-Corps, for example, can help business owners minimize self-employment taxes, while C-Corps might offer advantages for certain growth or reinvestment strategies. Sitting down with your CPA before year-end ensures your structure aligns with your financial goals and tax strategy.
2. Use Investment Properties Strategically
Real estate continues to be one of the most effective vehicles for building wealth and reducing taxable income. Depreciation, mortgage interest, and expense deductions can all lower your tax liability while helping you build long-term equity.
For homeowners or investors, now is the time to review your property portfolio, evaluate refinancing opportunities, and plan for next year’s deductions.
3. Explore Alternative Investments
Beyond traditional real estate, high earners can also benefit from alternative investments such as oil and gas partnerships or real estate syndications. These opportunities often come with unique tax advantages, particularly for real estate professionals who qualify for active participation.
These strategies can help offset income, diversify your investment portfolio, and open doors to additional deductions not available through standard asset classes.
Let’s Get Started
Schedule a $750 one-hour consultation with the CEO of Creative Advising (Snapback CPA), credited toward your first month when you join. This session is designed to build a customized strategy based on your income, goals, and business structure.
Watch the Short
Steven and Jarrod dive deeper into these strategies in this week’s Snapback CPA YouTube Short.
Watch the video here to learn how high-income earners can take action before year-end to minimize taxes and keep more of their hard-earned money.
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