Dropping Bombs Do This to Legally Pay LESS TAXES in 2025
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Jun 29, 2025 KC Chohan, the founder of Together CFO and Financial Fusion, specializes in tax strategies for the wealthy. In this discussion, he reveals how non-operating private foundations can help legally minimize tax bills, mirroring strategies used by billionaires. KC tackles misconceptions about the IRS, the roles of various non-profit structures, and innovations in AI for complex financial management. He also delves into the pros and cons of private foundations versus donor-advised funds, making vital insights into tax optimization for high-net-worth individuals.
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Ultra Wealthy's Tax Strategy
- Non-operating private foundations are the key entity the ultra-wealthy use to legally reduce tax rates to single digits.
- These foundations allow high net worth individuals to pay dramatically less taxes while maintaining control over their wealth.
Use Non-Operating Foundation Structure
- Set up a non-operating private foundation to donate money into it exclusively, maintaining control but losing personal ownership.
- This separation reduces personal taxation since taxation follows ownership.
Avoid Capital Gains with Foundation
- Donate appreciated assets like real estate into the foundation and sell them inside to avoid capital gains taxes.
- Reinvest profits tax-efficiently within the foundation without the constraints of a 1031 exchange.