Smart Tax Strategies Every Wealth Builder Should Know

Tax Code Fundementals

The tax code holds keys that most people overlook and two of the most powerful are Sections 162(a) and 199A. Together, they let business owners legally reduce taxable income, free up cash flow, and reinvest faster.

How Section 162(a) Works

Section 162(a) allows you to deduct “ordinary and necessary” expenses directly tied to running your business. This includes things like travel, professional services, and even insurance premiums.

Checks to keep in mind:

• Deduct ordinary and necessary business expenses under Section 162(a).
• Use the 199A QBI deduction to cut taxable pass-through income by up to 20%.
• Track and structure expenses carefully, documentation is everything.
• Redirect tax savings into IBC and cash-flowing assets to multiply efficiency.

Strategic use of deductions and QBI savings can free up thousands each year, money you can redirect into assets and policies instead of taxes.

The Advantage of Section 199A (QBI Deduction)

Section 199A offers up to a 20% deduction on pass-through income for qualifying business owners, making it one of the simplest ways to reduce taxable income and boost reinvestment power.

Smart planning with deductions can free up capital you’d otherwise send to the IRS, dollars that can now be redirected toward infinite banking policies and wealth-building assets.

How Section 162(a) Complements QBI

While 199A reduces taxable income, Section 162(a) allows business owners to deduct “ordinary and necessary” expenses such as travel, education, insurance premiums, and more. When combined, these provisions give entrepreneurs greater control over their tax strategy.

Applying Tax Savings for Wealth Building

At Generational Growth, we emphasize strategies that let you keep more of what you earn and put your dollars to work with intention. Leveraging sections like 162(a) and 199A is just one example of how disciplined wealth builders can break through financial walls and accelerate their freedom path.

The true value of these deductions isn’t just the immediate tax break, it’s the ability to recycle that freed-up cash into assets that compound. Pairing smart tax planning with Infinite Banking accelerates the process of breaking free from the traditional wealth path.

Disclaimer

The information provided by Generational Growth is for educational and informational purposes only. It should not be interpreted as financial, tax, legal, or investment advice. Everyone’s situation is unique —before making decisions, consult with a qualified professional such as a licensed financial advisor, CPA, or attorney. Generational Growth does not guarantee outcomes and assumes no responsibility for actions taken based on this material.