I know a lot of people don't use a CPA (myself included for years) but wanted to share something that blew my mind. My CPA suggests a tax-efficient strategy by investing in commercial solar projects (Note: these are not your typical installation over homes to get 30% tax credit), providing advantages such as accelerated depreciation, Investment Tax Credits (ITC) to offset W-2 income, federal and potentially state depreciation, and cash flow from electricity sales. Year 1 benefits surpass the purchase amount, yielding around 110-120% returns, with a cumulative spread of 130-150% over 5 years as tax benefits. These benefits got even better with Inflation Reduction Act, where they added a ton of benefits to accelerate solar and ev adoption. I have found this to be very helpful to offset our income from W2, Stocks and RSUs. Criteria for considering this investment strategy: - HNI 800k to 1M and above (lower can work but hard to find smaller projects) - This is available to folks who are residents (non-visa) green card or citizens - you need to open up a business/LLC - Material Participation Requirement from IRS To qualify as an active participant in a solar project, individuals must satisfy one of seven "material participation" requirements outlined by the IRS. Spending at least 100 hours on solar activities and being the most active participant are crucial factors. (This is taken care of by the firm I work with) The best part about this strategy is that you can go back 3 years and you can withhold federal taxes! #cpa #tax #w2 #passive-income #ipo #stocks #rsu #nvidia #meta #reddit #instacart #amazon #msft
Interesting can you share your cpa details?
Can someone link to details about how this works that I can read?
Following. Can you share cpa details as well?
Op, Agree its a great tax saver but I think its hard to get access to such solar projects.
It's actually not that hard, if you start planning your taxes and investments early in the year (for the current tax year). Folks I work with have a portfolio of projects for different budgets.
Is that 150% return over 5 years? Does that mean a $100k investment would give me $250k in benefits in the first 5 years?
Is that 150% return over 5 years? It's on your initial investment so it will be 50% on your original investment. Does that mean a $100k investment would give me $250k in benefits in the first 5 years? If you invest $100 you will get back $150k as tax benefits hence the ROI is 50%. You will get most of your returns (~30%) in year 1 and year 2
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Are you on immigrant visa?
It's hard to do this on your own, they pointed me to a solar+finance company that helps you through this process, all you have to do is invent the capital (money will owe in taxes) and they take care of the rest. The best part is that you can now withhold your taxes from paycheck and funnel that into this investment.
Everyone on this app is inventing capital, so that's ✔️