Income Tax Planning: The Power of Using All 3 Tax Buckets

o Provide the importance of strategic tax planning and give an overview of the three tax buckets. o Tax Bucket #1: Ordinary Income  Provide definition and sources. Outline tax treatment and marginal tax rates. Offer strategies to minimize tax impact. o Tax Bucket #2: Capital Gains  Short-term vs. long-term capital gains taxation. Illustrate investment strategies to manage capital gains with Code Section 664 Trusts. Examine the tiered taxation of a 664 Trust. o Tax Bucket #3: Tax-Free Income  Overview of tax-free income sources including Municipal Bonds, Roth IRAs (tax-free growth and withdrawal rules), and life insurance as an asset class (benefits and tax advantages). Give an example of using tax-free income to optimize retirement distributions. Detail how to balance income across all three buckets for efficiency. o Case Study & Application  Provide an example scenario of personal tax-efficient income planning, multi-generational, and retained earnings in businesses.