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A Powerful Two-Strategy Plan to Save Taxes!
- Davis Oliver
- Sep 1, 2025
- 4 min read
This week’s Taxes Saved Reviews illustrates how one high-income household was able to transform a looming six-figure tax bill into substantial savings. This is a powerful example of what can still be achieved in 2025. It also illustrates how early planning can position you even better for 2026.
As this year winds down, many people are wondering, “Is there still time to meaningfully reduce my tax burden for 2025?” Whether you’re approaching or already enjoying retirement, the answer is yes. But equally important is not waiting until it’s too late. Effective tax planning requires time, clarity and the right strategy.
Our clients, a married couple from Virginia, filing jointly, had a high-earning year:
$350,000 in W-2 income
$500,000 Roth conversion
$166,000 in long-term capital gains
Total taxable income = just over $1 million
Without any planning, their projected federal and state tax bill exceeded $350,000! This is a common scenario for high-net-worth retirees: strong income sources, strategic Roth conversions, but no current-year offsets to reduce the tax bite.
Rather than chasing deductions for their own sake, this client couple chose two tangible, revenue-producing businesses to provide the needed deductions. Each business has revenue potential and meaningful benefits beyond tax savings. The great part is that the strategies that were used didn’t require them to start new careers, come out of retirement or undertake excessive work efforts.
Strategy #1: Equipment Leasing Business
We helped them form a dedicated LLC to purchase revenue-producing equipment:
$500,000 of equipment was acquired using leverage
Only $50,000 cash was required out of pocket (10% down)
Full bonus depreciation under IRS Section 168 in year one
This generated a $500,000 deduction.
Strategy #2: Bitcoin Mining Business
This client was already a believer in Bitcoin long-term. We helped formalize that interest into a legitimate, active business:
$258,000 invested in mining equipment and hosting
Miners hosted in Texas using low-cost, renewable energy
Year-one deduction: $258,000
Combined, the two businesses produced $758,000 in year-one deductions.
Since these were newly launched businesses, Internal Revenue Code section 461 capped how much of the loss could be used for the 2025 tax year. The allowable deduction for 2025 was $642,000. The remaining $115,000 was not lost, it simply carries forward to 2026, where it can offset future Roth conversions or other income.
The impact from the tax savings alone provided a 96% return. Here’s the before-and-after snapshot:
Total tax savings in 2025 = $296,000
Total investment outlay = $308,000
Return on investment from tax savings alone = 96.2%
The benefits continue with deductions carrying into next year:
Additional 2026 tax savings: ≈ $40,000
Two-year tax savings: $335,000
Two-year ROI: 109%
These benefits are just from the tax savings. This does not count any income from the equipment leasing business or from Bitcoin mining. This is the kind of structured, strategic tax planning that high-income earners often don’t realize is available until it’s too late in the year.
If you’re reading this in late 2025, you still have time, but the window is closing quickly and you must act now to get these tax-savings before the end of the year! If you’d prefer a less rushed process, early 2026 offers even better flexibility and runway.
For high-net-worth households, especially Gen X and Baby Boomers who are considering Roth conversions, selling appreciated assets or who are preparing for Required Minimum Distributions (RMDs), the right strategies can convert taxes owed into long-term assets, cash flow and wealth preservation. Remember, it’s never too early to plan—but it can absolutely be too late.
The bottom line is that you don’t have to accept a six-figure tax bill! Most high-income earners and retirees simply assume their tax burden is fixed and that their CPA will “do what they can” but the rest is unavoidable. But, as this real case study illustrates, the right strategies can convert tax liability into long-term assets, cash flow and measurable wealth creation.
To Request Your Saving Tax Optimization Plan (S.T.O.P.) Analysis
Visit TaxesSaved.com – Watch the insightful case study webinar that shares two impactful client case studies showing how to save thousands of dollars in taxes.
Request your S.T.O.P. Analysis – Saving Tax Optimization Plan tailored to your unique situation.
Select a Date and Time – Be specific! Choose a time so we can prepare for your tax-saving opportunities.
Show Up and Learn Your Tax Risk – We’ll walk you step-by-step through exactly what to do to reduce retirement taxes and keep more of your income.
The impact of effective tax strategies can be transformational. Whether you’re planning a large Roth conversion, managing significant investment income, selling assets, preparing for future RMDs or if you’re just tired of writing large checks to the IRS, you have more options than you think, but only if you plan early enough to use them.
If you want clarity on what is still possible before 2025 ends or if you’d like to lay the groundwork for a stronger 2026, our team is here to help. Let’s build a tax plan that works as hard as you do. Visit TaxesSaved.com to get started.
Note: We serve retired, self-employed or high W-2 earners all over the Unites States. We have an efficient, supported process to meet online, as we have been doing for over 20 years. Our online meetings are private, the access is restricted and we never share our meeting link with anyone who’s not a part of the meeting.
Davis Oliver | Tax Strategist
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