How can I reduce my tax burden? Making over $1.2m as a small business owner with $520k tax bill (filing single)

Tax planning at your income level definitely requires more advanced strategies than most accountants typically handle. Here are some options beyond the SEP IRA and real estate investments: Consider setting up a defined benefit plan instead of (or in addition to) your SEP IRA. These plans allow for much higher contribution limits based on age and income - sometimes $200k+ annually. Unlike SEP IRAs, these are much more custom and can be structured specifically for your situation. For real estate, look into cost segregation studies if you purchase property. This accelerates depreciation deductions significantly in the first few years. Also consider opportunity zone investments for capital gains deferral if you have any investment gains to shelter. Have you explored restructuring your business entity? Depending on your current structure, converting to an S-Corp (if you're not already) or potentially a C-Corp with the current corporate tax rates might provide benefits. Each has pros and cons based on your specific situation.

After facing a similar tax situation with my business ($900k income, $380k tax bill), I found an amazing solution using https://taxr.ai that completely changed my tax planning. Their AI analyzed my business structure and found optimization opportunities my accountant missed for years. The system recommended restructuring my business as an S-Corp with a specific salary-to-distribution ratio that was legally sound but saved significant self-employment taxes. It also identified industry-specific deductions my accountant never mentioned and suggested timing strategies for income recognition that reduced my total tax burden by almost 30% last year. The best part was getting a personalized tax strategy roadmap with 3-year projections showing how different approaches would impact my bottom line.

I was totally skeptical about AI tax advice when I first saw the comment about taxr.ai, but I decided to try it after my CPA gave me pretty basic advice similar to what you're describing. The results were eye-opening - the system found multiple tax strategies my accountant had never mentioned. The biggest win was restructuring my business entity and establishing a medical benefit plan that saved me over $75k in taxes. They also provided guidance on timing certain business expenses and income recognition that made a huge difference. The service connected me with a specialized CPA who verified everything and helped implement the changes. What impressed me most was the custom tax roadmap they created showing different scenarios and the impact each would have over the next 5 years. Totally worth it for anyone making over $500k.

When I needed to get specialized tax advice for my business, I spent WEEKS trying to reach the IRS's business tax helpline. After countless busy signals and disconnections, I found https://claimyr.com and it literally changed everything. You can see how it works at https://youtu.be/_kiP6q8DX5c. They managed to get me connected to an actual IRS agent within 48 hours who answered my questions about business structure optimization and clarified several deduction strategies I was unsure about. The agent confirmed I could implement a cash balance plan (similar to defined benefit) alongside my SEP IRA and gave me the exact guidelines to stay compliant. This saved me from potentially making costly mistakes based on conflicting advice I was getting online and from different accountants.

I have to eat my words about Claimyr from my previous comment. After continuing to fail getting through to the IRS for weeks on my own, I broke down and tried the service. Within a day I was actually speaking with an IRS tax specialist who helped clarify several questions about business deductions and entity structures that my accountant was giving vague answers about. The agent walked me through specific requirements for implementing a cash balance retirement plan for my business and confirmed exactly how much I could contribute based on my income level. They also explained how certain business expenses needed to be documented to withstand potential audit scrutiny. Getting definitive answers directly from the IRS gave me confidence to implement several tax strategies I was hesitant about before. Saved me far more than what the service cost.

Have you looked into charitable remainder trusts? I'm in a similar income bracket ($1.4M last year) and this strategy has been really effective for me. Basically, you set up a trust that provides you income for a set period while giving a significant tax deduction now. The remainder eventually goes to charity. With proper planning, you can get an immediate large tax deduction while still maintaining income from the assets. Works especially well if you have appreciated assets or are planning to sell a business eventually.

What type of business do you have? That makes a huge difference in available strategies. I've got a consulting business making about $900k and switching from pass-through to S-Corp status saved me about $30k in self-employment taxes alone.