STRATEGY 7: Trading Losses (Offset Income and Gains)
What it is: Use structured investments to generate losses that offset taxable income or gains Who it applies to: High earners with capital gains or large income How to execute: Invest in structures generating negative K-1s Use losses to offset gains or income Defer taxes and redeploy capital Key compliance points: Ensure proper structuring and reporting Risk: Aggressive structures may be challenged by the IRS.