Strategic Tax Planning for High-Net-Worth Individuals
Minimize Taxes. Preserve Wealth. Build Legacy.
When your income, assets, and investments reach a certain level, your financial life becomes more complex — and so do your tax liabilities. At Velin & Associates, Inc., we specialize in working with high-net-worth individuals (HNWIs) — from successful entrepreneurs and doctors to creators, investors, and family offices — to create custom tax strategies that go beyond routine compliance.
Here’s how high-income earners can take a proactive approach to tax planning in 2025 and beyond:
Why Tax Planning Matters More at Higher Income Levels
As your income grows, so does your exposure to:
- The top federal tax bracket (37%)
- Net Investment Income Tax (NIIT)
- Alternative Minimum Tax (AMT)
- Capital gains from real estate, business sales, and investments
- Estate and gift tax thresholds
Without proactive planning, your wealth can erode — not just from taxes this year, but from missed opportunities to preserve and transfer it effectively.
Key Tax Planning Strategies for High-Net-Worth Inividuals
- Entity Structuring & Income Allocation
High-net-worth creators, doctors, and online business owners often benefit from using entities like:
- S Corporations to reduce self-employment taxes
- LLCs or partnerships for income splitting and flexibility
- C Corporations in special cases (e.g., retained earnings or fringe benefits)
Proper structuring allows you to control how and when income is taxed, and may open the door to additional deductions and retirement contributions.
- Maximizing Retirement & Tax-Deferred Savings
Beyond traditional IRAs, HNWIs can benefit from:
- Backdoor Roth IRA conversions
- Solo 401(k) or SEP IRA plans
- Defined Benefit Plans (especially for late-career professionals or high earners)
These accounts can reduce taxable income and provide long-term, tax-advantaged growth.
- Investment Tax Optimization
We help clients reduce capital gains exposure through:
- Tax-loss harvesting
- Asset location strategies (e.g., placing high-growth assets in Roth accounts)
- Qualified Opportunity Zone investments
- 1031 exchanges for real estate investors
Smart investment positioning can reduce unnecessary taxes and improve portfolio performance.
- Gifting, Trusts & Estate Planning
High-net-worth families must plan for the future — not just for retirement, but for legacy:
- Use the $13.61 million estate tax exemption before it drops in 2026
- Gift up to $18,000 per person per year tax-free
- Consider Irrevocable Trusts, GRATs, or Family Limited Partnerships
- Fund 529 education plans or Donor-Advised Funds (DAFs) to support your values
Our tax planning works hand-in-hand with your estate attorney or family office to ensure you’re building and protecting your legacy.
- Charitable Giving With Tax Benefits
Philanthropy is not only generous — it can be tax-efficient:
- Donate appreciated stock instead of cash
- Set up a Donor-Advised Fund (DAF) for long-term giving
- Bunch donations to itemize every few years
- Use Qualified Charitable Distributions (QCDs) from IRAs if over 70½
We’ll help you give with intention while lowering your tax exposure.
Tax Planning for Complex Lives
At Velin & Associates, Inc., we work with:
- High-income creatives: YouTubers, filmmakers, influencers
- Medical professionals: Dentists, surgeons, healthcare practice owners
- Online entrepreneurs: Amazon sellers, Shopify store owners, TikTokers
- Real estate investors, family offices, and independent professionals
Each client’s situation is different — and so is our strategy. Whether it’s structuring a business exit, reducing audit risk, or coordinating with your legal team, our goal is simple: maximize what you keep.
Let’s Build Your Custom Tax Strategy
If you’ve outgrown basic tax prep, it’s time to take control of your finances with proactive tax planning. Let’s work together to create a strategy that protects what you’ve earned — and builds what comes next.
Velin & Associates, Inc.
8159 Santa Monica Blvd STE 198/200
West Hollywood, CA 90046
📞 323-902-1000
📧 dmitriy@losangelescpa.org
🌐 www.losangelescpa.org
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.