The Innovative Group provides educational and informational content only. All content on this site — including tax strategy concepts — are for educational purposes.
We do not provide tax advice, tax preparation, or legal counsel
Content is general in nature and may not apply to your situation
Always consult a licensed CPA, tax attorney, or financial professional
Examples shared are educational and do not guarantee outcomes
You've Worked Hard for Everything You Have. Let's Make Sure It Works for You.
Most financial plans are built around products. Ours is built around your life — your goals, your fears, your family, your future. The Thrive 365 Framework is how we make sure nothing falls through the cracks.
Most People Don't Fail Financially Because They Don't Work Hard Enough.
They fail because no one ever sat down with them — really sat down — and looked at the whole picture. The investments and the taxes. The growth and the protection. The today and the 30 years from now. That's the gap we close.
"I don't really know if I'm on track."
The most common thing we hear. A 401(k) statement isn't a plan. We build the real thing.
"I feel like I'm paying too much in taxes."
You probably are. Tax strategy isn't a bonus — it's built into every plan we write, from day one.
"What happens if something goes wrong?"
We build a foundation of guaranteed protection before we ever talk about growth. Your floor matters first.
"My advisor just sells me products."
We're fiduciaries. Our only job is your outcome. No quotas, no product shelf, no hidden incentives.
Radical Honesty
We'll Tell You What Most Advisors Won't.
On Investments
We Don't Promise Returns. We Promise Process.
No advisor can guarantee investment outcomes — and any who claim otherwise should raise a red flag. Markets fluctuate. What we can guarantee is that we stay the course with you, maintain a disciplined strategy, and never make fear-based decisions with your future. Consistency and discipline over time is the real edge.
Where Guarantees Do Exist
We Build Certainty Into the Parts of Your Plan That Allow It.
Not everything in a financial plan is subject to market risk. We strategically incorporate guaranteed income vehicles, life insurance with contractual death benefits, and protection-based tools to create a floor of certainty — so your essential needs are never left to chance or market timing.
✦ Our Proprietary Planning Framework
The Thrive 365 Framework
A whole-life view of your financial world. Not just your portfolio — your income, your taxes, your protection, your legacy. Every dimension, in one coordinated plan.
Dimension 1
Protection First
We build your floor before your ceiling. Guaranteed income, life insurance, and contractual protection so the people you love are never left exposed.
Dimension 2
Tax Strategy
Tax planning isn't a year-end conversation — it's woven into every recommendation we make. Legal, compliant, and proactive from day one.
Dimension 3
Growth & Wealth
Disciplined, diversified investment strategy aligned to your timeline and risk tolerance — never chasing performance, always building toward your number.
Dimension 4
Legacy & Impact
What do you want to leave behind — for your family, your community, your values? We plan for the full arc, not just the accumulation phase.
Why Thrive 365 Matters
Most advisors meet with you once a year and might review your plan quarterly. Thrive 365 Framework takes a holistic approach to your financial world not just once or four times a year, but 365 days a year.
When your investments, protection, taxes, and legacy planning all talk to each other — that's when a financial plan becomes truly powerful. Siloed advice leaves money on the table and gaps in your safety net. Thrive 365 closes them all.
✓
One coordinated team — no silos between advisor, insurer, and tax strategy
✓
A written plan you own — not a verbal summary that disappears after the meeting
✓
Ongoing reviews — we track our promises as closely as we track your portfolio
✓
Fiduciary standard — every recommendation must be in your best interest, period
How We Work Together
The Thrive 365 Planning Process
Seven steps. Clear expectations. No surprises. This is exactly how we build your plan — and how we hold each other accountable to it.
What You Get at the End
→ A written financial plan you own and can hold us to
→ Tax strategy integrated from day one — not bolted on later
→ A protection floor before any growth conversation
→ Scheduled reviews where we report back on our commitments
→ One team — no siloed advice from disconnected professionals
Thrive 365 Process
Every client goes through the same disciplined process — because great outcomes don't happen by accident. They happen through structure, honest communication, and follow-through on both sides. Here's exactly what to expect.
1
Discovery & Goal Setting
We start by listening — not pitching. Map income, assets, debts, taxes, and what you actually want your life to look like.
No judgment, no agenda
2
Gap Analysis & Risk Review
Identify every exposure — in protection, tax efficiency, retirement readiness, and income sustainability. Most people are surprised.
Find what's missing
3
Tax-Integrated Strategy
Every recommendation is reviewed through a tax lens before it reaches you. Built in from day one — not bolted on later.
Compliant & documented
4
Protection Floor
Guaranteed income and contractual protection established before any growth conversation. Your floor comes first.
Contractual guarantees
↓ continues
5
Your Written Plan
A clear Thrive 365 roadmap documenting goals, strategies, and shared accountability. You own it — share it with anyone.
You own this document
6
Implementation
We execute step by step — every account, every protection placed, every move explained before it's made. No surprises.
Full transparency
7
Ongoing Reviews & Accountability
Regular meetings, tracked commitments, adapting to life changes. This is where most advisors disappear. We don't.
365 days a year
Our Partnership Model
Accountability Goes Both Ways.
A great financial plan only works when both sides show up. Here's what we commit to you — and what we'll ask of you in return.
This Is a Two-Way Relationship
We've seen plans succeed and plans fall short — and the difference is almost never the market. It's whether the client and advisor both stayed engaged, communicated honestly, and followed through on what was agreed. We hold up our end. We'll ask you to hold up yours.
We Deliver a Written Plan
You get a documented financial plan with clear goals, strategies, and timelines. Not a verbal summary — a real plan you can review, share with your CPA, and hold us to.
We Show Up for Reviews
We schedule structured reviews to track progress, adapt to life changes, and report back on what we committed to. We track our promises as closely as we track your portfolio.
We Ask You to Engage
Your plan works when you show up to reviews, tell us when life changes, and follow through on agreed actions. We guide the strategy — but you make it real.
We Ask for Honest Communication
If your goals shift, income changes, or you're losing sleep over the market — tell us. We can't plan around what we don't know. Honesty is the foundation of a plan that works.
We Stay the Course Together
Market volatility is normal. Panic is expensive. We commit to keeping you grounded in your long-term strategy — and we ask you to trust the process when it's uncomfortable.
We Act as Your Fiduciary
Every recommendation we make is legally and ethically required to be in your best interest. No product quotas, no hidden incentives. Your outcome is our only metric.
Who We Serve
Built for Your Situation
Every client we serve faces unique financial challenges. The Thrive 365 process is consistent — your plan is completely personalized.
Families & Individuals
Life insurance, estate planning, education funding & family protection — the fundamentals done right.
Business Owners
Succession planning, tax-efficient exit strategies, business protection & retirement solutions for entrepreneurs.
Retirees & Pre-Retirees
Guaranteed income planning, Social Security optimization, Roth conversions & sustainable wealth preservation.
Tax planning for peak earning years, income protection & long-term wealth strategy for life after the game.
Doctors & Dentists
Practice financing, student loan strategy, asset protection & tax-advantaged wealth-building for healthcare professionals.
✦ The Thrive 365 Framework
You Deserve a Plan That Sees Your Whole Life.
Not just your portfolio. Not just your 401(k). All 360 degrees — protection, taxes, growth, and legacy — built together, working together, held accountable together.
The Client You've Always Wanted to Get In Front Of? We'll Show You How.
The Innovative Group arms you with the education, strategies, and confidence to walk into any high-income client's world — and immediately solve their biggest problem: taxes.
What Is Value?
The Question Every Advisor Should Be Able to Answer.
Most advisors walk into a client meeting and lead with products, rates, or credentials. But the clients worth having aren't looking for a product — they're looking for someone who can solve a problem they didn't even know had a solution.
Everyone Else
✗
"Let me show you our managed portfolio returns…"
✗
Competing on price, credentials, and AUM
✗
Talking about products before understanding the problem
✗
No reason for the high-income client to pick up the phone
TIG-Equipped Advisors
✓
"What if you could reposition your tax bill into something you own and control?"
✓
Leading with a tax problem every high-income client already has
✓
Bringing strategies CPAs haven't shown them — and getting referrals from CPAs
✓
Getting in front of any homeowner with a mortgage — which is almost everyone
The TIG Difference
Value Isn't a Product You Sell. It's a Problem You Solve Before Anyone Else Does.
Business Tax Strategy
Business owners paying 35–45% in taxes have a problem. We have the legal, compliant solution — strategies their CPA has never shown them.
W-2 Tax Solutions
Physicians, attorneys, executives — their CPA has nothing for them. We do. Strategies that work without owning a business.
Mortgage Free Life
Anyone with a mortgage can benefit. That's your conversation starter with virtually every client you'll ever meet.
CPA Referrals
When you educate a CPA on what TIG does, they send you clients. It's a referral engine no one else is building.
Instant Credibility
Walk in with real numbers on a real strategy. You stop being "another advisor" the moment you open your mouth.
The Real Question
So when a prospect asks "Why should I work with you?" — what do you say?
With TIG behind you, your answer is simple: "Because I can show you how to legally reposition what you're paying in taxes — and I can get your mortgage paid off in under 8 years. No one else in this room is going to say that."
Business Owners
W-2 Earners
Homeowners
Real Numbers · Real Impact
See What the Strategy Actually Produces
Walk into every client meeting armed with projections — not promises.
Real Examples · Two Client Types
Every client you meet falls into one of these two categories. Know the numbers cold for both.
Example 1
The Business Owner
S-Corp · ERM · 42% Combined Tax Rate
$400K/Year Contribution
ERM · S-Corp · 42% Tax Rate
5-Yr Reserve
$1,783,000
5-Yr After-Tax (Normal)
$1,143,760
Annual Cost Breakdown
Ceding Fee (8%)$32,000
Startup (Yr 1 only)$5,000
Annual Fee$6,000
Claims Expense (1.4%)$5,600
Net to Reserve / Yr$356,400
Taxes if Not Structured$168,000
5-Year Advantage
+$639,240 · 55.9% ROI
$1.5M/Year Contribution
ERM · S-Corp · 42% Tax Rate
5-Yr Reserve
$6,661,500
5-Yr After-Tax (Normal)
$4,289,100
Annual Cost Breakdown
Ceding Fee (~5%)$75,000
Startup (Yr 1 only)$5,000
Annual Fee$6,000
Claims Expense (1.4%)$21,000
Net to Reserve / Yr$1,384,000
Taxes if Not Structured$630,000
5-Year Advantage
+$2,372,400 · 55.3% ROI
Example 2
The W-2 Earner
Physicians · Attorneys · Executives · Engineers
Physician · Illinois
W-2 Income
$1,830,000
Tax Without Strategy
$733,938
Breakdown
Cash Out of Pocket$360,000
Units Purchased2 Duplexes + 1 Bungalow
Year 1 Depreciation$1,800,000
Tax After Strategy$3,585
Net Savings (Tax − Investment)$370,353
Total Tax Savings
$730,353
Corporate Attorney · Texas
W-2 Income
$650,000
Tax Without Strategy
$213,153
Breakdown
Investment$100,000
Gross Deduction (5×)$500,000
Year 1 Deductible (50% AGI cap)$325,000
Carryforward (Yrs 2–6)$175,000
TX State Tax$0 (no income tax)
Fed Tax After Strategy$93,028
Total Tax Savings (Yr 1)
$120,125
Example 3 · The Homeowner
Mortgage Free Life (MFL) is not a product, a carrier, or a one-off sales program. It is a scalable enterprise platform designed to solve the single biggest challenge facing BGAs today: how to help advisors consistently bring value that creates meaningful client conversations.
Actual Client Case Study · Client H.F.
Mortgage Free Life Strategy
7.33 Yrs
Payoff
$300K+
Saved in Interest
Pay the Bank
Total Interest Paid
$397,600
Interest % of Loan
139.51%
Total Payments
360
Years to Pay Off
30 Yrs
Pay Yourself
Total Interest Paid
$83,387
Interest % of Loan
29.26%
Total Payments
88
Years to Pay Off
7.33 Yrs
22.7 Yrs
Faster
$300K+
Saved
$178K+
Tax-Adv. Retire.
Why This Works
Everyone has a mortgage. Almost no one knows this exists.
The Mortgage Free Life strategy is your universal conversation starter — it works with W-2 earners, business owners, doctors, contractors, and anyone who owns a home.
This is NOT Bank on Yourself or Infinite Banking.
Mortgage Free Life is a completely separate and distinct strategy. It is not a whole life policy concept, not a privatized banking system, and has no connection to Bank on Yourself or Infinite Banking.
Quick Question
Could your clients benefit from strategies like these?
If you're working with business owners paying 35–45% in combined taxes, the answer is almost certainly yes.
No Surprises. No Fine Print.
We're Going to Make Money. And We Want You to Know That Upfront.
We believe the best partnerships are built on transparency. TIG makes money when you succeed — and we'd rather tell you exactly how this works now than have you find out later.
For Advisors — What's Included
Every advisor gets the same access. No tiers. No holdbacks.
✓
Full education & strategy library
✓
Talk tracks & objection handles
✓
Industry playbooks & client tools
✓
Life & annuity contract support
✓
Ongoing TIG team support
Option 1
$199
/ month
Simple flat monthly fee. No production minimums, no commitments — just pay and get to work.
Option 2 — Qualify for Free
Free
Meet any one of the following:
✓
$2M in annuity production with MFL
✓
$50k+ in life production with MFL
✓
An Advisor with our RIA
For Distribution Partners
FMOs & BGAs — We Work With You.
TIG is the BGA of Tax Strategies. We plug directly into your agent force as a dedicated tax strategy resource.
Your distribution, amplified
A new revenue stream for your agents
Tax education no one else is offering
We support your agents, you keep the relationship
Who We Are
We Do Business on a Handshake and a Word.
We've built everything at TIG on trust. If your word is your bond and your handshake means something — you'll fit right in here. That's how we operate, and it's the only way we know how.
Stay Sharp. Stay Connected.
Weekly Calls to Keep You at the Edge.
Live training, real case studies, and a community of professionals sharpening their skills every week.
Mon
2:00
CST
Mortgage Free Life Call
All Things MFL
A dedicated deep-dive into the Mortgage Free Life strategy — ideal for agents learning the system or looking to sharpen their approach with clients.
Tue
10:00
CST
CPA Edge
Advanced Tax Strategy Forum
We educate CPAs on the advanced tax strategies we use — and for agents, this is how you build a referral partner unlike anything else in your network.
Wed
10:00
CST
The Innovative Advisor Edge
Live Training & Q&A
An in-depth look at the tax strategies we deploy — with live training and open Q&A so you walk away ready to use what you've learned.
Thu
10:00
CST
MFL Open Mic
Client Examples & Open Forum
An open forum for all MFL agents — bring your specific client scenarios, questions, and challenges. Real answers in real time.
Your Next Step
Stop Leaving the Best Clients to Someone Else.
The education is here. The strategy is proven. The clients are out there. All that's left is the conversation — and we'll teach you exactly how to have it.
Up to 15% of gross business revenue, capped at $2.9 million for 2026
Number of employees does not matter — employees do not participate in the plan
Contributions can be skipped if needed
General Contractors
Roofers
Storage Facilities
Dental Practices
Property Managers
Manufacturers
Medical Practices
Tech Companies
Retail & Service
Professional Services
+ Any Profitable Business
Initial Strategy Framing
Everyone hates taxes — use that.
Option 1 — Tax Angle
"Hi Bob, can I ask you something — have you ever looked at whether part of what you're paying in taxes could instead be repositioned into a risk management structure that you control?"
Option 2 — Insurance Angle
"Ever paid insurance premiums and never filed a claim? What if those unused premiums became retained capital instead?"
Then transition into
"Qualified, profitable businesses may have the ability to reposition up to 15% of gross revenue, with annual allocations starting at $200,000 and capped at $2.9 million, into a strategically structured insurance program. The company purchases legitimate commercial insurance designed to address real coverage gaps. A separately formed reinsurance company can participate in that risk, allowing premiums to accumulate in a regulated insurance entity. When implemented properly, this strategy may allow capital to be retained more efficiently than traditional income distribution. The result is a formal risk management structure designed to build long-term reserves."
3–10% insurance cost — scales based on premium amount
1.25–1.5% pooled claims expense — shared across program participants
Agent Note
Reinsurance strengthens your current coverage structure by filling gaps — it is not a replacement for primary insurance.
$400K/Year Example
ERM · S-Corp · 42% Combined Tax Rate
5-Yr Reinsurance Reserve
$1,783,000
5-Yr After-Tax (Normal)
$1,143,760
Annual Cost Breakdown
Ceding Fee (8%)$32,000
Startup Cost (Yr 1 only)$6,000
Annual Fee$6,000
Claims Expense (1.4%)$5,600
Net to Reserve / Yr$356,400
Taxes if Not Structured$168,000
5-YEAR ADVANTAGE
+$639,240 · 55.9% ROI
$1.5M/Year Example
ERM · S-Corp · 42% Combined Tax Rate
5-Yr Reinsurance Reserve
$6,661,500
5-Yr After-Tax (Normal)
$4,289,100
Annual Cost Breakdown
Ceding Fee (~5%)$75,000
Startup Cost (Yr 1 only)$6,000
Annual Fee$6,000
Claims Expense (1.4%)$21,000
Net to Reserve / Yr$1,384,000
Taxes if Not Structured$630,000
5-YEAR ADVANTAGE
+$2,372,400 · 55.3% ROI
* $1.5M figures are proportionally scaled from the $400K model. Actual results depend on product, structure, and administration. For illustration purposes only.
What Happens After 12 Months?
Your premiums don't disappear — they become assets
Once a policy completes its first year, any premiums not paid out in claims become assets of the reinsurance company — owned and controlled by the business owner.
Months 1–12: Premiums are invested conservatively with liquidity but are not yet available for distribution
Month 13+: Reserves remain invested and have the potential to be used for business loans
✓ Eligible Investments
Stocks & equities
Bonds & fixed income
Mutual funds & ETFs
Real estate investment trusts
✗ Not Permitted
Life insurance products
Annuities
Closely held or private company stock
One-Liner Follow-Ups
For when they ask the next question
It's legal: Fortune 500 companies have used micro captive insurance for decades. The 831(b) code gives small businesses access to the same strategy.
It's real insurance: These are actual commercial policies covering real, identifiable business risks — not a paper structure.
It's your money: The reserve belongs to your reinsurance company, which you own. You're not gifting it to a carrier.
It survived IRS scrutiny: The program administrator completed a 2-year IRS audit in 2024 with zero changes required.
10 Things Every Advisor Should Know
Read before your first conversation
1
This Is Not a Tax Shelter — It's a Risk Management Tool
The primary purpose of an 831(b) plan is to mitigate real, identifiable business risks that are either uninsured or underinsured. The tax efficiency is a secondary benefit — not the other way around. Plans must meet a strict 4-Part Test: (1) risk transfer, (2) risk distribution, (3) the risks must be fortuitous in nature, and (4) the plan must operate under accepted principles of insurance. If the tax benefit is the only reason a client wants in, that's a red flag — not a green light.
2
How the Plan Structure Actually Works
The operating company pays premiums to a Direct Writer, which underwrites and issues commercial insurance policies covering real coverage gaps. The Direct Writer transfers the majority of that risk — and the accompanying premiums — to the client's 831(b) Plan ARC (Allied Reinsurance Company) under a reinsurance contract. That ARC is then placed in risk co-ops with other ARCs, satisfying the risk distribution requirement. The average client participates in 5 risk co-ops. This structure mirrors IRS Revenue Ruling 2009-26.
3
Tax Deferral Is Not Tax Free
Plan reserves are held in a C-Corp electing under the 831(b) tax code. Investment income and realized gains inside the ARC are taxable at C-Corp rates. When a client eventually takes distributions, those are paid as qualified dividends — taxed at capital gains rates, not ordinary income rates. That distinction is meaningful and is where the long-term advantage lies. Always make sure the client's CPA understands this.
4
Claims Are Real — and That's the Point
When a covered loss occurs, the client files a claim just like any insurance policy. Payments are distributed across the deductible (10%), the 831(b) Plan ARC (50%), the Direct Writer (up to 10%), and the Risk Co-Op (up to 30%). In a no-claim year, unclaimed reserves accumulate in the ARC as tax-deferred wealth. Either way, the client is better off than self-insuring with after-tax dollars.
5
This Is Not a Risk-Free Transaction
All participants are placed in risk co-ops where they share in each other's risk on a pro rata basis. A client could be responsible for a portion of claims filed by unrelated parties. This is not a loophole — it's a fundamental feature of what makes the structure legitimate insurance. Clients who are not comfortable sharing any risk are not a good fit.
6
The 831(b) vs. 401(k) Analogy
Both were passed by Congress. Both allow tax-deferred contributions. Both have annual contribution limits, distribution rules, and require a third-party administrator. Both must meet IRS guidelines. The 401(k) defers income for retirement. The 831(b) defers income to self-insure against unforeseen business risks. If a client accepts their 401(k), they can understand their 831(b).
7
What the Fee Structure Actually Looks Like
The all-in cost at $400K per year is roughly 8–10% — including startup (Year 1 only), the ceding fee (3–10% tiered by contribution), the $6,000 annual administration fee, and claims expense (~1.4%). Annual tax returns, 8886 filings, actuarial services, claims handling, and compliance are all included — not billed hourly. Compare that to traditional captives which can charge $30K–$80K in startup alone.
8
Plan Options Match Real Business Risks
10 available products: Enterprise Risk Management, Custom Warranty, Storage Assurance, Tenant Assurance, Dental Protection Plan, Medical Allied Reinsurance Company, Tax Audit Assurance, Deductible Reimbursement, Contract Default Liability, and Lease & Rent Protection — each designed for specific industries and risk profiles.
9
Contribution Limits, Distribution Rules & Solvency Testing
Annual contributions are capped at $2.9 million. Contribution levels are determined using gross revenues and the participant's industry. Plans operating for 3–5 years are subject to annual solvency testing. Clients can access reserves by declaring a dividend (limited to surplus reserves) or by filing a qualifying claim. A $3,000 termination fee applies upon plan closure.
10
The IRS Has Looked at This — and the Structure Held
The 831(b) tax code has been in place since 1986. The program administrator completed a 2-year IRS audit in 2024 with zero changes required. The structure is built on IRS Revenue Ruling 2009-26 and the 4-Part Test derived from case law. Always encourage clients to involve their CPA from the very beginning.
Who To Talk To First
Industry Targeting Guide
Lead with their pain, not our product. Know their world before you explain ours.
General Contractors
Build reserves instead of writing checks to the IRS
Their Pain Points
Subcontractor defaults leaving them holding the bag mid-project
High deductibles on general liability & workers comp
"You're already telling patients their implants have a warranty. Let's make that warranty work for you — fund it pre-tax and pocket what isn't claimed."
Property Managers & Landlords
Protect cash flow, own the insurance revenue
Their Pain Points
Tenants not carrying adequate renters insurance
Paying third parties to offer tenant protection plans
"Right now you're paying a third party to offer tenant insurance. Flip that — you offer it, keep up to 90% of the revenue, tax-deferred."
Qualifying Your Prospect
Two minutes of qualification saves two hours of wasted presentation.
Green Lights ✓
Move Forward
✓Gross revenue of $1.35M or more
✓Can commit $200K–$2.9M annually
✓Paying significant federal/state income tax
✓Has identifiable, unfunded business risks
✓Business owner (not an employee)
✓Works with a CPA or tax advisor
Red Flags ✗
Pause or Pass
✗Revenue under $1.35M
✗Can't identify real, insurable business risks
✗Looking for a pure tax shelter with no risk interest
✗Expects guaranteed investment returns
✗Wants to liquidate in under 2 years
The 3 Qualifying Questions
Ask naturally — never like a checklist
"At the end of your strongest years, does it feel like you're writing a massive check to the IRS with very little to show for it — and have you found anything that's actually moved the needle on that?" — Most owners will say no, which is your entry point.
"What are the biggest risks to your business that your current insurance doesn't fully cover?" — Surfaces real, unfunded exposures.
"Outside of traditional retirement accounts, do you have a strategy for building long-term reserves in a tax-efficient way?" — Identifies the gap you're designed to fill.
Handle With Confidence
Common Objections
Every objection is a question in disguise. Answer the real question underneath it.
?
"Is this a tax shelter? Is it legal?"
This is a legitimate risk management strategy built on the 831(b) tax code — the same code Fortune 500 companies use for micro captive insurance. The key is that real commercial policies cover real business risks. The tax benefit flows from the risk management, not the other way around. The program completed a two-year IRS audit in 2024 with zero changes required.
?
"What if I have claims?"
That's exactly what the reserve is for — that's the whole point of insurance. If you have a claim, it gets paid from your reinsurance company. In a no-claim year, those premiums stay in your reserve as tax-deferred wealth. Either way, you're far better off than paying from after-tax dollars.
?
"This sounds complicated."
The concept is simple: instead of paying taxes on income you'd normally use to self-insure your risks, you route those dollars through a proper insurance structure and keep them. All administration is handled for you. You own a reinsurance company, but you're not running one day-to-day.
?
"What are the fees?"
At $400K per year, your total cost — startup, ceding fee, annual fee, and claims expense — runs roughly 8–10% of the contribution. The remaining 90%+ goes into your reserve. Compare that to the 37–42% you'd lose to taxes on that same income today. The program is built around transparent, economical pricing — no hidden fees.
?
"My CPA hasn't heard of this."
That's very common — most CPAs aren't insurance specialists. The Innovative Group works directly with your CPA and provides full documentation. Many CPAs become strong advocates once they review the structure. We're happy to get on a call with your CPA together — that's actually preferred.
?
"What happens when I want my money back?"
When you liquidate the reinsurance company, reserves are distributed at capital gains rates — not ordinary income rates. That's a meaningful difference. The 5-year illustration shows $1.78M in reserve versus $1.14M after-tax the traditional way — a $639K advantage in your favor.
How It Works When It Matters Most
How Claims Are Paid
A claim is proof the structure works — not a problem. Here's exactly how money flows when a covered loss occurs.
Real-World Case Study
$100,000 Max Claim Example
Terri operates a dental clinic in a Southern U.S. college town. She enrolled in an 831(b) plan and designed it around her biggest concern: third-party business interruption. For two years, no claims were filed and her reserves grew. Then COVID-19 hit — the local college sent students home, her patient base disappeared, and despite being an essential business, Terri suffered months of lost income. By filing a claim on her 831(b) plan, Terri recouped a portion of that lost income, funded by reserves she had already set aside with pre-tax dollars.
How a $100,000 Claim Gets Paid
Money flows from four sources
Direct Writer
Validates & processes
up to 10% · $10,000
831(b) Plan ARC
Client's reinsurance company
50% · $50,000
Risk Co-Op
Pool of plan participants
30% · $30,000
Operating Company
Your Client's Business
+ Deductible · 10% · $10,000
Total Claim Paid · $100,000
Claim Breakdown Summary
Deductible (Operating Company)10% · $10,000
831(b) Plan ARC (Client's Reserve)50% · $50,000
Direct Writerup to 10% · $10,000
Risk Co-Opup to 30% · $30,000
"Either way you win — in a claim year, your reserve pays for a real loss. In a no-claim year, those same dollars grow as tax-deferred wealth."
What Types of Risks Can Be Claimed?
Fortuitous risks only — not ordinary business expenses
Warranty
Business Interruption
Dispute Resolution
Supply Chain Interruption
Data Breach / Loss of Income
Sub-Contractor Default
Third-Party Interruption
Brand Protection
Audit Assurance
Key Employee Loss
Political Risk
Professional Liability
Core Tax Framework
The code and rulings that make this work
IRC §831(b)
Allows qualifying small insurance companies to elect to be taxed only on investment income — not underwriting income — up to $2.9M annually.
Rev. Ruling 2009-26
IRS ruling establishing the framework for risk distribution through risk pools — the foundation of the co-op structure used in this program.
4-Part Test
(1) Risk transfer, (2) Risk distribution, (3) Fortuitous risk, (4) Operates under accepted insurance principles. All four must be satisfied.
C-Corp Taxation
The ARC is taxed as a C-Corp under the 831(b) election. Investment income taxable at C-Corp rates. Distributions treated as qualified dividends at capital gains rates.
Form 8886
Annual disclosure filing required for all participants. Included in the program's all-in administration fee — no additional billing.
2024 IRS Audit
The program administrator completed a 2-year IRS audit in 2024 with zero changes required — the structure and documentation held under full examination.
CPA Q&A
The hard questions — answered directly
Q
Is this considered a Listed Transaction by the IRS?
Micro captive insurance arrangements with certain abusive characteristics have been listed by the IRS (Notice 2016-66). However, this program is specifically structured to avoid the characteristics that trigger listed transaction status — namely, it maintains real risk distribution through co-ops, uses commercially reasonable premium pricing, and covers genuine business risks. The program administrator completed a 2-year IRS audit in 2024 with zero changes required. Always have the client's CPA independently confirm based on current IRS guidance.
Q
How is the premium amount determined? Is it actuarially justified?
Contribution levels are determined based on the participant's gross revenues and industry — not set arbitrarily. The program uses actuarial analysis to ensure premium levels are commercially reasonable relative to the risks covered. Over-inflated premiums with no relationship to actual risk exposure are one of the hallmarks of abusive micro captive structures — this program is designed to avoid that entirely.
Q
What documentation is required for the tax deduction?
The operating company's premium payments to the Direct Writer are ordinary and necessary business expenses deductible under IRC §162. Documentation includes: commercial insurance policies covering specific business risks, premium payment records, the reinsurance agreement between the Direct Writer and the ARC, annual tax returns for the ARC (Form 1120-PC), Form 8886 disclosures, and actuarial reports. All of this is managed and provided by the program administrator as part of the annual fee.
Q
What happens at liquidation? How are distributions taxed?
When the client ultimately liquidates the ARC, accumulated reserves are distributed as a liquidating dividend. These distributions are taxed at qualified dividend / capital gains rates — not ordinary income rates. This is where the long-term tax advantage is realized: premiums were deducted at ordinary income rates (up to 37% federal) and reserves are recovered at capital gains rates (typically 15–20%). The spread between those rates, compounded over years, drives the economic benefit.
Q
What are the ongoing compliance requirements?
Annual requirements include: Form 1120-PC filing for the ARC, Form 8886 disclosure filing, actuarial solvency testing (for plans 3–5 years old), maintaining the reinsurance agreement with the Direct Writer, participation in risk co-ops, and claims processing for any covered losses. All handled by the program administrator and included in the $6,000 annual administration fee.
Risk Disclosure — Always Share
The IRS may challenge whether the arrangement constitutes real insurance — risk transfer and distribution must be genuine.
Premium amounts must be actuarially justified and commercially reasonable — inflated premiums are a primary audit trigger.
Clients participate in risk co-ops — they share in claims filed by unrelated parties on a pro rata basis.
Tax deferral is not tax elimination — reserves subject to C-Corp taxation on investment income and capital gains rates upon distribution.
A $3,000 termination fee applies upon plan closure.
No specific tax outcome is guaranteed. Always refer clients to their CPA and legal counsel.
From Conversation to Close
The Sales Process
Simple steps. Follow The Innovative Group's Thrive 365 approach — understand first, then recommend.
5-Step Process
From first call to closed deal
1
Lead with the Initial Strategy Framing
Don't open with product names or tax code sections. Open with the concept: real insurance, real risks, your money stays with you instead of the IRS. Gauge interest before going deeper.
2
Identify Their Risks
Lead with a risk conversation specific to their world. "What are your biggest exposures that your current insurance doesn't cover well?" This is where the strategy connects to their reality.
3
Qualify & Size the Opportunity
Confirm revenue ($1.35M+), annual funding ability ($200K–$2.9M), and tax situation. Run the 5-Year Comparison at their specific funding level to show the dollar impact.
→ Use: 5-Year Comparison Tool
4
Involve the CPA Early
Don't wait for the prospect to ask their CPA — invite them into the conversation proactively. Full documentation is provided. CPAs who understand the structure become referral partners.
5
Submit the Intake Form
Once the prospect is qualified and interested, complete the Reinsurance Intake Form. Risk analysis, policy structuring, and all administration is handled from here.
→ Required: Reinsurance Intake Form
Your Compensation
What You Earn
Management Fee— earned on program setup and ongoing relationship management
AUM Fee— earned on assets under management if properly licensed
These are recurring relationships, not one-time transactions. A client at $400K/year is a long-term, compounding partnership.
Everything in One Place
Resource Center
Training videos, program documents, and email templates for the SRA 831(b) strategy.
Training Videos
Upload & organize your training library
Program Overview
What is an 831(b) and who qualifies — start here
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Pitch Walk-Through
How to open the conversation with a business owner prospect
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CPA Conversation Guide
Walk a CPA through the structure, IRS rulings, and audit history
+ Upload Video
Objection Handling
Live role-play of the most common objections
+ Upload Video
Relevant Documents
Program materials, legal opinions & compliance docs
First touch to a profitable S-Corp or C-Corp owner
Expand ↓
Subject: A strategy most CPAs have never shown you — and it lowers your tax bill this year
Hi [First Name],
Most business owners I work with feel like they're at the mercy of their April tax bill. They max the 401(k), run expenses through the business, and still write a big check to the IRS.
There's a structure called an 831(b) micro-captive that lets your business create its own insurance company — one that covers risks your existing policies don't, generates a deductible premium payment, and builds reserves you own. The IRS has explicitly approved this structure in Rev. Rul. 2002-89 and 2002-90.
Would it be worth 20 minutes to see if it fits your situation?
[Your Name]
2️⃣
CPA Introduction Email
Sent to the prospect's CPA before the review meeting
Expand ↓
Subject: 831(b) micro-captive for [Client Name] — requesting your review
Hi [CPA Name],
I'm working with your client [Client Name] on an 831(b) micro-captive structure and wanted to bring you in before any decisions are made.
The structure involves the business paying deductible premiums to a related captive insurer that makes a valid §831(b) election. Key code sections: IRC §831(b), §162 (business expense), IRS Rev. Rul. 2002-89 and 2002-90. The captive must have legitimate insurable risk, arm's-length premiums, and proper actuarial documentation.
Happy to walk through the structure on a call. I can provide the legal opinion and full documentation package.
[Your Name]
3️⃣
Follow-Up After Numbers Review
Sent after running numbers with the prospect
Expand ↓
Subject: Your 831(b) summary from today — $[Deduction] in potential deductions
Hi [First Name],
Great speaking with you today. Here's a summary of what we modeled:
• Business Income: $[Income]
• Annual Captive Premium: $[Premium]
• Est. Tax Deduction: $[Deduction]
• 5-Year Reserve Build: $[Reserve]
Next step is getting your CPA involved. I can send them the IRS rulings, legal opinion, and actuarial documentation directly.
[Your Name]
4️⃣
Year-End Urgency
Sent Q4 to prospects who haven't yet committed
Expand ↓
Subject: 831(b) captive — premiums must be paid before December 31
Hi [First Name],
To take the premium deduction in this tax year, the captive must be established and premiums paid before December 31.
Based on what we modeled, you're looking at approximately $[Deduction] in potential deductions this year.
If your CPA has reviewed the structure, the next step is starting the formation process. That typically takes 2–3 weeks. Let me know if you'd like to move forward.
[Your Name]
Leverage — put 10–11% down, depreciate 100% of purchase price Year 1
20%
Down payment — seller finances remaining 80%
$1.25M
2025 §179 limit — up to $1.25M deductible Year 1
The Core Reframe
Lead with this — every time
The Payment Is NOT an Expense — It's a Discount
"The money to purchase the tech package is already spent — it's your future taxes due. The business owner is using tax dollars to buy the tech package. They can either purchase the tech package… or pay the government taxes. The tech package is less expensive than taxes. This should be an easy choice."
Ideal minimum tax bill: $100,000+
Purchase range: $50K min / $250K max ($12,500 increments)
Only 20% down — seller finances remaining 80% at AFR
No monthly payments — balloon due up to 30 years
Deduction on full purchase price, not just the 20%
Client receives real, deployable technology — Data Vault + AI + CRM
Opening Scripts
Two approaches — choose based on the prospect
Option 1 — The "Discount, Not Expense" Angle
"Most business owners think of tax strategies as additional expenses. The money we're talking about is already spent — it's your future tax bill. The question is whether you pay it to the government, or redirect it into something that also gives your business a technology upgrade. The Lucrum tech package is less expensive than just paying the tax."
Option 2 — The §179 Math Angle
"Section 179 lets you deduct the full purchase price of qualifying technology in the year you place it in service. What if you could put 20% down on a $250,000 tech package, take a $250,000 deduction this year, and finance the rest with no monthly payments? Your tax savings exceed your down payment in most cases."
ERC Opportunity — 2025
ERC money received in 2025 is now reported on the 2025 tax return. This creates an immediate, predictable tax liability. Purchase Lucrum Tech Package in an amount equal to or greater than ERC funds received — up to $1.25M — for a direct offset. Client also gets a legitimate AI-embedded CRM.
One-Liner Follow-Ups
It's a real technology purchase: The client receives an actual Secure Data Vault with embedded Lucrum Private AI and CRM. Not a paper transaction — a working business tool.
The deduction is on the full price, not just the down payment: Under §179 and the at-risk rules (IRC §465), recourse debt counts as "at risk" — the full financed amount is deductible.
No monthly payments: The seller-financed balance is due as a single balloon in up to 30 years. Membership points earned through engagement can offset the balance.
ERC angle: ERC funds received in 2025 are taxable on the 2025 return. Purchasing Lucrum in an equal or greater amount offsets that tax directly.
Qualifying Your Client
The right prospect has a business, a tax bill, and cash for a 20% down payment.
§179 Tax Impact Calculator
Enter their situation — see the impact instantly
$
$
Tax Without Lucrum
Tax With Lucrum
Down Payment (20%)
Net Tax Savings
Enter business income, filing status, purchase amount, and state to see the §179 impact
Green Lights ✓
Move Forward
✓Business owner, contractor, or self-employed
✓Tax liability of $100,000 or more
✓Can write a check for 20% down
✓Will use technology >50% for business
✓Received ERC funds in 2025
✓Has a CPA who can file Form 4562
Red Flags ✗
Pause or Pass
✗W-2 employee only — §179 requires business income
✗Tax liability below $50,000
✗Cannot make the 20% down payment
✗Will not use the technology (>50% rule)
✗CPA opposed to §179 on financed tech
✗Needs a guaranteed outcome
How It Works
Five steps from enrollment to deduction. Client buys real technology, places it in service, and takes a full §179 deduction — financed with 20% down.
Step-by-Step Process
1
Client Accesses Agent Link
Client uses the providing agent's unique link to access the Lucrum Industries website and begins automated enrollment.
2
Purchase & Finance Agreement Signed
Client electronically signs the purchase and finance agreement. Wire instructions provided for down payment (20% + first-year AFR finance fee).
3
Down Payment Wired
Client wires down payment to Lucrum Industries. Automatic purchase receipt generated showing both the down payment and financed amount — CPA uses this for documentation.
4
Technology Placed in Service
Client plugs the Secure Data Vault into their work computer and begins using the embedded CRM and AI. This is the "placed in service" date for §179 — business use must exceed 50%.
5
§179 Election on Form 4562
CPA elects to expense the full purchase price under §179 on Form 4562. Deduction flows through to reduce business taxable income. For S-corps, passes through to shareholder's 1040.
What the Client Receives
Secure Data Vault
Physical locked drive — data stays on-site, off the internet. Optional encrypted remote tunnel.
AI
Lucrum Private AI
Fully private AI running from the locked drive. No cloud storage, no third-party access.
Annual points earned through program engagement. Debt Points reduce outstanding balance.
Common Objections
Every objection is a question in disguise. Answer the real question underneath it.
?
"Can I really deduct the full price if I only put 20% down?"
Yes — under §179 and the at-risk rules (IRC §465), recourse debt counts fully toward your "at risk" amount. Because the client personally guarantees the seller-financed loan, the full financed balance is at risk, and the entire purchase price is eligible for the §179 election in the year placed in service.
?
"Isn't this just a way to avoid taxes on debt I haven't paid yet?"
No — §179 is a deliberate Congressional tax incentive to encourage business investment in technology. The deduction is taken because the client made a real purchase of real property and placed it in service. The IRS has specifically provided that recourse-financed equipment qualifies.
?
"My CPA hasn't heard of this."
That's common. The mechanics are standard §179 applied to a bundled hardware and off-the-shelf software package. The CPA simply needs to confirm: (1) hardware qualifies as tangible personal property, (2) software meets §179(d)(3) off-the-shelf definition, (3) client uses it >50% for business, and (4) client stays within §179 limits. The CPA FAQ addresses all of these directly.
?
"What happens if I sell my business?"
The technology should be transferred — not sold — to another entity the owner controls (>80%), to avoid §179 and §1245 recapture. A transfer to a disregarded SMLLC triggers no recapture. Contributions to a corporation under §351 or a partnership under §721 are also nonrecognition events. Selling the device for cash or abandoning it before the 5-year recovery period triggers recapture.
?
"What are the recapture rules if I stop using it for business?"
If business use drops below 50% during the 5-year MACRS recovery period, or the asset is sold, gifted, or abandoned, §179 and §1245 recapture applies. To avoid: maintain business use above 50% each year, keep contemporaneous usage logs, do not dispose of the asset for 5 years, retain all purchase invoices and Form 4562.
?
"Do I have to repay the loan? Can the points actually cover it?"
The balance is due as a single balloon in up to 30 years — no monthly payments. Interest accrues at the fixed AFR rate. Membership points earned through program participation can be applied to offset both principal and interest. Consistent participation can accumulate enough points to cover the balance over time, though this is not guaranteed.
CPA Deep Dive
For CPA conversations and audit-readiness. Every answer sourced from IRC, Treas. Reg., and program documentation.
Core Tax Framework
§179(a)–(b)
Election to expense qualifying property in year placed in service. 2025 limit: $1,250,000.
§179(d)(1)
Qualifying property: tangible personal property used in active trade or business. Includes computers, servers, networking gear.
§179(d)(3)
Off-the-shelf software: readily available, nonexclusive license, not substantially modified, not custom-developed.
§465 At-Risk
Recourse debt counts fully as "at risk." Full financed amount eligible for §179. Nonrecourse debt would not count.
§1245 Recapture
Recapture on disposition before recovery period ends. Avoidable via §351, §721, or disregarded SMLLC.
§7872
30-year fixed note at or above long-term AFR falls in term-loan safe harbor — no imputed interest.
CPA & Audit-Level Q&A
Q
Does the §179 deduction apply to the full financed price or just the down payment?
The full purchase price. §179 does not distinguish between cash-funded and debt-funded acquisitions. Under IRC §465(b), recourse debt counts fully toward the taxpayer's at-risk amount, so the full financed balance is eligible for the §179 election.
Q
Is the seller-financed note structure compliant under §7872?
Yes, provided the 30-year fixed note bears interest at or above the applicable long-term AFR. A term loan uses the long-term AFR for maturities exceeding 9 years. If the stated rate equals or exceeds the long-term AFR, no below-market imputation applies. A 10-year auto-renewing note would be treated as a demand loan — more difficult to defend. The 30-year fixed structure is specifically more defensible.
Q
What documentation must be in place for the deduction to hold up under audit?
Retain: (1) Purchase agreement and wire receipt from Lucrum Industries; (2) Form 4562 with §179 election; (3) Evidence technology was placed in service during the tax year; (4) Contemporaneous usage logs showing >50% business use through the 5-year recovery period; (5) Seller-financed note and personal guarantee; (6) Records through at least 5 years beyond the recovery period.
Q
How does the S-corp structure affect the §179 deduction?
An S-corp may elect §179 at the entity level, subject to the dollar and taxable-income limits. The deduction passes through to shareholders proportionate to ownership on their K-1 and flows to Form 1040. Each shareholder applies the deduction against their share of S-corp income. Excess amounts can be carried forward.
Risk Disclosure — Always Share
The §179 deduction is not guaranteed — qualification depends on meeting all IRS criteria; confirm with a licensed tax advisor.
Business use must exceed 50% each year during the recovery period — failure triggers recapture as ordinary income.
Disposing of the technology before the 5-year MACRS recovery period triggers §179 and §1245 recapture.
State tax conformity to §179 varies — not all states conform to federal §179 limits; confirm with CPA.
The seller-financed balance remains a real obligation — membership points may offset it but repayment is not guaranteed.
This is not tax advice. All clients should consult their licensed tax advisor before making any financial decisions.
Everything in One Place
Resource Center
Training videos, program documents, and email templates for the Lucrum §179 strategy.
Training Videos
Upload & organize your training library
Program Overview
What Lucrum is and how §179 works — start here
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Pitch Walk-Through
How to open the conversation with a business owner
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CPA Conversation Guide
Walk a CPA through §179, the deduction mechanics, and ERC angle
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Objection Handling
Live role-play of the most common objections
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Relevant Documents
Program materials, legal opinions & compliance docs
Legal & Tax
Lucrum Program Overview Doc
Click to upload
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Client Intake / Application
Click to upload
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Financing Agreement Sample
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Key References
IRC §179 · 2025 limit: $1,250,000 · Phase-out: $3,130,000 · TCJA 2017 · ERC taxability in year received
Subject: A tax strategy that turns your tax bill into a technology investment
Hi [First Name],
Most business owners I work with feel like they have limited control over their April tax bill — they write the check and move on.
I want to share a strategy that redirects that money instead of just paying it. It's a Section 179 technology purchase: you put 20% down on a qualifying AI and CRM technology package, take a 100% deduction on the full purchase price in Year 1, and finance the remaining 80% with no monthly payments.
In most cases, the tax savings exceed the down payment. You end up with a real, working technology platform — and a significantly lower tax bill.
Would it be worth 20 minutes to run your numbers?
[Your Name]
2️⃣
ERC-Specific Outreach
For businesses that received ERC funds in 2025
Expand ↓
Subject: ERC funds received in 2025 are now taxable on your 2025 return
Hi [First Name],
If you received Employee Retention Credit funds in 2025, those funds are reportable on your 2025 tax return — creating a predictable tax liability this year.
The good news: purchase a qualifying technology package equal to or greater than your ERC funds received, take a 100% Section 179 deduction in 2025, and eliminate most or all of that new tax liability. You also get a legitimate AI-embedded CRM platform to grow your business.
Would it be worth a quick call to see if the numbers work?
[Your Name]
3️⃣
CPA Introduction Email
Sent to the prospect's CPA
Expand ↓
Subject: §179 technology deduction for [Client Name] — requesting your review
Hi [CPA Name],
I'm working with your client [Client Name] on a §179 technology deduction and wanted to bring you in before any decisions are made.
The structure: [Client Name] purchases a qualifying AI/CRM technology package. The full purchase price — including the financed portion — is deducted in Year 1 under IRC §179 (2025 limit: $1,250,000). The 80% balance is financed with no monthly payments in Year 1.
Key code sections: IRC §179. The technology platform is a real, operational system — not a paper asset.
Happy to walk through the structure on a call.
[Your Name]
4️⃣
Year-End Urgency
Sent Q4 to prospects who haven't committed
Expand ↓
Subject: §179 deduction deadline — technology must be placed in service before Dec 31
Hi [First Name],
To take the §179 deduction this tax year, the technology must be purchased and placed in service before December 31.
Based on what we modeled, you're looking at approximately $[Savings] in tax savings on a $[Investment] technology investment.
Ready to move forward? The process takes about a week. Let me know and I'll send the next steps.
[Your Name]
§179 / Bonus Depreciation · Business Owners
EZ AdvantaFlex
Own heavy equipment. Earn rental income. Eliminate your tax bill.
14–18%
Projected net annual rental return on equity/capital
90% LTV
Financing available · 10-year amortization · 72-mo remarketing
29,000+
Pieces of equipment enrolled · $2B+ in assets on platform
The Investor Profile
Business owners with active tax liability and investable capital
Why This Works for Business Owners
Business owners form their own LLC to purchase heavy equipment — aerial lifts, construction machinery. With 8:1 to 9:1 leverage, they put 10–11% down and depreciate the full financed purchase price in Year 1 — generating 8–9× their cash investment in deductions. The equipment simultaneously earns 14–18% projected annual rental income through EZ's Master Rental Company. Real asset. Real income. Real deduction.
Your Competitive Edge
EZ Equipment gives clients a standalone income-producing asset — their own equipment rental company — with $2B+ already deployed and institutional-grade leasing infrastructure. 8:1 to 9:1 leverage on their cash. Income from day one. Tax savings in Year 1. Your CPA clients will understand it immediately.
Active business income with significant tax liability
Down payment: ~10–11% of equipment cost — 8:1 to 9:1 leverage on cash
Client forms their own equipment rental LLC — fully separate
First ACH rental revenue deposit net 45–60 days
Aerial lifts, heavy machinery — real VIN-registered assets
"If you could put $25,000 to $60,000 down on a real asset, get 8 to 9 times that amount as a tax deduction in Year 1, and earn 14–18% projected rental income on your equity — would that be worth 20 minutes of your time?"
Option 2 — Asset Angle
"There's a program where you form your own equipment rental company, put 10–11% down on heavy construction equipment, and depreciate the full financed amount in Year 1 — that's 8 to 9 times your cash investment as a deduction. You also earn 14–18% projected annual returns on your equity through a $2B+ national rental platform."
Option 3 — CPA Referral Angle
"Your CPA knows heavy equipment depreciates — but do they know about a program where your client puts 10–11% down, finances the rest, and depreciates the full purchase price in Year 1? That's 8 to 9 times their cash as a deduction, plus 14–18% projected rental income on a $2B+ national platform. Most CPAs light up when they see the leverage."
One-Liner Follow-Ups
For when they ask the next question
It's real equipment: Aerial lifts, heavy machinery — VIN-registered, deployed to job sites. Not a paper asset.
You own it through your own LLC: EZ Equipment Zone has no ownership or management interest in your entity. You form it, you own it.
Demand is institutional: 29,000+ pieces, $2B+ deployed. EZ leases to end users through the Master Rental Company — no need to find tenants.
The leverage is 8:1 to 9:1: Your client puts 10–11% down and depreciates 100% of the purchase price in Year 1. On a $500,000 equipment purchase with $55,000 down, the deduction is $500,000 — over 9× the cash invested.
Income starts fast: First ACH deposit typically net 45–60 days. Pro-rated if entered mid-month.
Qualifying Your Prospect
The right client has active business income, a real tax bill, and capital to deploy.
Quick Calculator
Estimate Year 1 tax savings and projected income instantly
$
Cash Down
Deduction (8–9× Cash)
Est. Tax Saved (Yr 1)
Projected Annual Income
Enter equipment price to see Year 1 tax savings and projected rental income
Green Lights ✓
Move Forward
✓Active business income with significant tax liability
✓Can invest 10–11% down on $200K–$2M+ in equipment (8:1 to 9:1 leverage on cash)
✓Has or willing to form an LLC for equipment ownership
✓Works with a CPA or tax advisor
✓Interested in real, tangible income-producing assets
✓Has financing capacity or strong credit for 90% LTV
Red Flags ✗
Pause or Pass
✗No active business income or tax liability to offset
✗Needs immediate liquidity or short exit — 72-month minimum commitment
✗Expects guaranteed returns — these are projections
✗Unwilling to form or manage a separate LLC
✗CPA categorically opposed without reviewing
✗Passive income only — confirm active treatment with CPA
The 3 Qualifying Questions
Ask naturally — never like a checklist
"When you look at your business tax bill this year — is there a number you feel like you just have no control over?" — Opens the tax pain door.
"Have you ever looked at owning heavy equipment as an investment — not to use it yourself, but to put it to work and collect rental income?" — Surfaces investment appetite.
"If I could show you a way to put roughly 10% down on a real asset, get 8 to 9 times that amount as a Year 1 tax deduction, and earn 14–18% projected income on your equity from day one — would that be worth 20 minutes?" — The close.
How It Works
Five steps from application to income-producing equipment owner with a zero tax bill.
The AdvantaFlex Process
From application to first ACH deposit
1
Client Forms Their Own Equipment Rental LLC
The client establishes a new LLC for equipment ownership. EZ Equipment Zone has no ownership or management interest — it belongs entirely to the client. This is what makes the depreciation deduction clean: they own the asset outright through their own company.
EZ assists in identifying equipment and structure
2
Equipment Is Identified and Purchased
EZ assists the client in selecting equipment from the platform's pool of aerial lifts and heavy machinery. Financed at 88–90% LTV (8:1–9:1 leverage) through EZ's institutional partners or the client's own bank. Minimum entry typically $50,000+ in equipment value.
Quick approval via institutional financing partners
3
Equipment Joins the Master Rental Company Platform
Enrolled in the EZ platform — one of the largest pools of aerial lifts and heavy equipment for rent in the U.S. The Master Rental Company leases to end users on the owner's behalf. The client never manages leases or logistics.
29,000+ pieces · $2B+ in assets deployed
4
Client Takes §179 / Bonus Depreciation in Year 1
The full financed purchase price may qualify for §179 or bonus depreciation in Year 1 — typically 8:1 to 9:1 leverage on cash invested. On a $500K purchase with $55K down, the deduction is $500K. Always confirm treatment with the client's CPA.
8:1–9:1 leverage · Full purchase price deductible · Above the line
5
Rental Revenue Begins Flowing
First ACH deposit net 45–60 days after enrollment. Projected net annual return of 14–18%+ on equity/capital. After the 72-month remarketing window, equipment cycles out and the position can be refreshed or exited.
14–18% projected net annual return on equity
Platform at a Glance
The Platform
One of the largest pools of aerial lifts and heavy equipment for rent in the U.S. 29,000+ pieces. $2B+ in assets. Institutional-grade infrastructure.
Client's LLC
Owner forms their own rental company — completely separate from EZ. No EZ ownership or management. Full owner control and depreciation benefit.
Financing
88–90% LTV — 8:1 to 9:1 leverage on the client's cash. 10-year amortization. Full financed purchase price included in depreciable basis. Quick approval via EZ's institutional partners or client's own bank.
Returns
14–18% projected net annual return on equity. Flex platform revenue share schedule. First ACH net 45–60 days from enrollment.
Depreciation
§179 or §168(k) bonus depreciation on full purchase price in Year 1. Offsets active or passive income. CPA confirms treatment for each client.
Exit / Cycle
72-month remarketing agreements cycle out used equipment. Position can be refreshed. Built-in lifecycle — not open-ended.
Common Objections
Every objection is a question in disguise. Answer the real question underneath it.
?
"Is this just another tax shelter?"
No. The client forms their own LLC, purchases real heavy equipment, and that equipment is deployed generating actual rental revenue. The depreciation flows from genuine equipment ownership under §179 or bonus depreciation — the same mechanics a contractor uses to write off a crane. Real equipment. Real leases. Real rental income.
?
"What do I actually own?"
Your client owns the equipment through their own LLC — an entity they form and control completely. EZ Equipment Zone has no ownership or management interest in that entity. The LLC owns the physical equipment (VIN-registered, tracked). The Master Rental Company leases it to end users on their behalf and pays them a revenue share.
?
"What if the equipment doesn't get rented?"
EZ's platform already has 29,000+ pieces generating rental revenue — $2B+ in assets actively deployed. The Master Rental Company handles all leasing and operations. The 14–18% projected return is based on current platform performance. That said, returns are projections, not guarantees. The client should review program documents and consult their advisors.
?
"My CPA hasn't heard of this."
The depreciation mechanics — §179 and bonus depreciation on heavy equipment — are completely standard and your CPA will recognize them immediately. What's different is the platform: instead of buying equipment for their own business, they're buying into an established national rental infrastructure. The tax treatment is the same. EZ can provide documentation for CPA review.
?
"Is the income passive or active?"
This depends on the client's level of involvement and business classification. Equipment rental is generally passive under §469(c)(2) unless the client is in the business of renting equipment. If passive, depreciation losses only offset passive income. The client's CPA must confirm treatment. This is why we always bring in the CPA early — never make this determination for them.
?
"How do I get out of it?"
The program uses 72-month remarketing agreements — equipment cycles out at the end of the term and can be refreshed or exited. During the term, the equipment is generating rental revenue. Upon disposition, §1245 depreciation recapture applies; the client's CPA should account for this in planning.
?
"Can I use my own bank?"
Yes. EZ offers quick approval through institutional financing partners, but clients are welcome to use their own local bank. The program supports 90% LTV on a 10-year amortization structure.
CPA Deep Dive
For CPA conversations and technical questions on the EZ Equipment AdvantaFlex program.
Core Tax Framework
The code sections that make this work
§179
Immediate expensing of qualifying equipment Year 1. 2025 limit: $1,250,000. Cannot create a net loss — excess carries forward.
§168(k)
100% bonus depreciation restored via OBBBA 2025. Full purchase price including financed portion deductible Year 1. Can create net loss.
§469 — Passive
Equipment rental is generally passive per §469(c)(2). Losses offset passive income only unless client qualifies as active in the rental trade. CPA must confirm.
§465 — At-Risk
Client must be at-risk. Recourse debt + actual equity invested establishes at-risk basis — includes the financed portion under standard equipment financing.
§1245 Recapture
All depreciation previously taken is recaptured as ordinary income upon disposition. Plan for this from day one — it's a known, manageable event.
MACRS 5-Year
Heavy construction equipment and aerial lifts are typically 5-year MACRS property — eligible for accelerated depreciation and bonus depreciation treatment.
Key Parties
EZ Equipment Zone
Platform operator. Assists in equipment identification. Manages the Master Rental Company. Contact: info@ezequipmentzone.com · (877) 851-0176 · ezequipmentzone.com
Master Rental Company
Leases the client's equipment to end users. Collects rental revenue and distributes the owner's revenue share. Managed by EZ Equipment Zone.
Client's LLC
Formed and owned 100% by the client. Purchases, owns, and depreciates the equipment. Receives pass-through income/loss. Zero EZ ownership.
Lenders
EZ's institutional financing partners or client's own bank. 88–90% LTV (8:1–9:1 leverage). 10-year amortization. Full financed portion included in depreciable basis.
CPA Q&A
Q
Can the client depreciate the full purchase price including the financed portion?
Yes. Under §179 and §168(k), the depreciable basis includes the full purchase price — not just the down payment. If the client buys $500,000 of equipment with ~11% down ($55,000), the full $500,000 is eligible for the Year 1 depreciation deduction — roughly 9:1 leverage on cash invested. The at-risk rules under §465 require the debt to be recourse — standard equipment financing is typically recourse, so the financed amount is included in the at-risk basis.
Q
Is the income/loss active or passive?
This is the critical question. Equipment rental activities are generally classified as passive under §469(c)(2) regardless of participation. Exceptions exist if the client is in the business of renting equipment as their primary trade or business, or if they qualify for the real estate professional exception. The CPA must confirm treatment based on the client's specific facts. If passive, losses offset only passive income. Do not make this determination for the client.
Q
What happens at disposition — recapture?
Yes — §1245 recapture applies on all depreciation taken. The full depreciation amount is recaptured as ordinary income in the year of disposition. This is a known, manageable event that should be modeled upfront. The CPA should plan for the recapture year and ensure the client understands this before entering the program. It does not eliminate the benefit — it defers the income to a future year when the client may have other planning levers available.
Q
How does §179 interact with passive loss rules?
§179 deductions are limited to the taxpayer's aggregate taxable income from active businesses in that year — they cannot create a net loss. Excess carries forward. Bonus depreciation under §168(k) does not have this limitation and can create a net loss that carries back or forward. The CPA should determine which method is more advantageous given the client's income profile and the passive/active classification question.
Risk Disclosure — Always Share
Projected returns of 14–18% are estimates based on current platform performance — not guarantees.
§1245 recapture applies upon disposition — plan for ordinary income in the exit year.
Active vs. passive classification must be determined by the client's CPA — do not make this determination yourself.
Client is liable for repayment of financing regardless of rental revenue performance.
§179 deduction cannot exceed active business income — excess carries forward.
Always direct clients to their own CPA and legal counsel before participating.
Everything in One Place
Resource Center
Training videos, program documents, and email templates for EZ Equipment AdvantaFlex.
Training Videos
Upload & organize your training library
Program Overview
What AdvantaFlex is and how the platform works — start here
+ Upload Video
Pitch Walk-Through
How to open the equipment ownership conversation with a business owner
+ Upload Video
CPA Conversation Guide
Walk a CPA through §179, §168(k), passive/active, and recapture
+ Upload Video
Objection Handling
Live role-play including the passive/active question and recapture
First touch to a profitable business owner with active tax liability
Expand ↓
Subject: Turn your tax bill into income-producing equipment you own
Hi [First Name],
Most business owners I work with feel like their tax bill is one thing they can't control. They max the 401(k), run what they can through the business, and still write a big check in April.
I want to share something different. There's a program where you form your own equipment rental company, purchase heavy equipment through it — aerial lifts, construction machinery — finance 88–90% of the cost (8:1–9:1 leverage on your equity), and collect 14–18% projected annual rental income on your equity. The equipment is already deployed through a $2B+ national platform with 29,000+ pieces in service.
The kicker: with 8:1 to 9:1 leverage, your client puts 10–11% down and depreciates 100% of the purchase price in Year 1. On a $500,000 equipment purchase, that's a $500,000 deduction on roughly $55,000 out of pocket.
Would you have 20 minutes to run the numbers?
[Your Name]
2️⃣
CPA Introduction Email
Sent to the prospect's CPA before the review meeting
Expand ↓
Subject: Equipment ownership program for [Client Name] — §179/bonus depreciation — requesting your review
Hi [CPA Name],
I'm working with your client [Client Name] on an equipment rental ownership program and wanted to bring you in before any decisions are made.
The structure: [Client Name] forms their own LLC, purchases heavy equipment (aerial lifts / construction machinery) at 88–90% LTV (8:1–9:1 leverage on cash down), and enrolls in the EZ Equipment Zone platform — $2B+ deployed, 29,000+ pieces. Projected net rental return on equity: 14–18%/year.
The tax angle: the full purchase price may qualify for §179 or §168(k) bonus depreciation in Year 1. Key considerations for your review: (1) active vs. passive under §469, (2) at-risk basis under §465, (3) §1245 recapture planning on exit.
Happy to walk through the structure. I can provide the program overview and financing documentation.
[Your Name]
3️⃣
Follow-Up After Calculator Review
Sent after running numbers together
Expand ↓
Subject: Your EZ Equipment numbers — $[Tax Saved] in estimated Year 1 tax savings
Hi [First Name],
Great speaking with you today. Here's a summary of what we modeled:
• Equipment Purchase Price: $[Price]
• Down Payment ([X]%): $[Down]
• Full Depreciation (Year 1): $[Depreciation]
• Est. Tax Saved at [Rate]%: $[Tax Saved]
• Projected Annual Rental Income: $[Return] (~14–18% on equity)
Next step is looping in your CPA. I can send them the program overview, financing terms, and relevant code sections directly.
[Your Name]
4️⃣
Year-End Urgency
Sent Q4 to prospects who haven't committed
Expand ↓
Subject: §179 deadline — equipment must be placed in service before December 31
Hi [First Name],
To take the §179 or bonus depreciation deduction this tax year, the equipment must be purchased and placed in service before December 31.
Based on what we modeled, you're looking at approximately $[Tax Saved] in estimated Year 1 tax savings — roughly 8–9× the $[Down] cash invested.
If your CPA has reviewed it, the application process moves quickly. Let me know and I'll send next steps.
[Your Name]
(877) 851-0176 · info@ezequipmentzone.com
Tax-Advantaged Charitable Giving · W-2 Earners
The Leveraged Charitable LLC
5:1 Leverage · Up to 50% AGI Deduction · Works for W-2 Earners · Invitation Only
Works for W-2 employees — offsets wages dollar-for-dollar
5 Yrs
Unused deduction carryforward above the 50% AGI cap
Why W-2 Earners Are Your Best Prospect
Your Competitive Edge
W-2 employees — physicians, attorneys, executives, engineers — are among the highest-taxed individuals in America. Unlike business owners, they have almost no traditional tax reduction tools. A 401(k) barely moves the needle. Their CPA has told them for years there's nothing they can do. The Leveraged Charitable LLC changes that entirely: $25,000 donated generates $125,000 in charitable deductions, flowing via K-1 directly to their 1040 against W-2 income.
Works for W-2 income — offsets wages, salary, and bonus directly
Also works for self-employed and business owners with AGI income
Contributions in increments of $1,000 above minimum
Deduction capped at 50% of AGI annually
5-year carryforward for excess deductions above the cap
No passive activity rules — this is a charitable deduction, not a loss
K-1 issued by LLC — flows to Schedule A of your 1040
Opening Scripts
Two approaches — choose based on the prospect
Option 1 — The W-2 Problem Angle (Lead With This)
"As a W-2 earner, you've probably heard from your CPA that there's not much you can do about your tax bill — the 401(k) barely moves the needle and most strategies require owning a business. What if there was a structure designed specifically for people in your situation — one that generates five dollars of charitable deduction for every dollar you put in, flows directly to your 1040, and offsets your W-2 income dollar-for-dollar?"
Option 2 — The Tax Math Angle
"When you write a check to charity, you get a dollar-for-dollar deduction. What if you could get five dollars of deduction for every dollar donated — legally, with full IRS-compliant documentation, through a structure reviewed at the 'more likely than not' standard? Would that change how you think about giving?"
Case Studies
Illustrative examples — confirm with CPA
Orthopedic Surgeon · Illinois
W-2 · $75K Investment
W-2 Income$850,000
Gross Deduction (5×)$375,000
Fed Tax Saved$138,750
TOTAL SAVINGS
$157,313
Corporate Attorney · Texas
W-2 · $100K Investment · No State Tax
W-2 Income$650,000
Gross Deduction (5×)$500,000
Yr 1 / Carryforward$325K + $175K carry
TOTAL SAVINGS (YR 1)
$120,125
One-Liner Follow-Ups
It's a real donation to real charities: The LLC donates tangible goods to qualified 501(c)(3) organizations. The deduction arises from an actual charitable act — not a paper transaction.
The leverage is in the appraisal: The LLC purchases at wholesale. The IRS-recognized deduction equals fair market value — approximately a 5:1 ratio. An independent qualified appraiser certifies this annually.
No passive activity rules: This is a charitable deduction, not a manufactured loss. W-2 earners with no passive income can use this fully.
The legal opinion is "more likely than not": That's the IRC §6664(d) penalty protection standard — the position would more likely than not be sustained on its merits. That's a high bar.
Not a listed transaction: This program is not identified in any IRS Listed Transaction or Notice as a reportable transaction under Reg. 1.6011-4.
Qualifying Your Donor
The right prospect has income, a tax bill, and some affinity for doing good. Let the calculator do the qualifying.
Tax Impact Calculator
Enter their situation — see the deduction, cap, and tax savings instantly
$
$
Gross Deduction (5×)
Year 1 Deductible
Carryforward
Est. Fed Tax Saved
Enter income, filing status, investment amount, and state to see the full picture
Green Lights ✓
Move Forward
✓W-2 employee with significant income — physician, attorney, executive, engineer, pilot, banker
✓AGI $250K+ — enough to use a meaningful deduction in Year 1
✓Can invest $25,000+ in Year 1
✓Frustrated their CPA has "nothing" beyond a 401(k)
✓Works with a CPA or tax advisor
✓Some charitable intent — wants giving to do more
Red Flags ✗
Pause or Pass
✗Minimal AGI — cap limits deduction to near-zero benefit
✗Expects a financial return — pure deduction, no asset retained
✗CPA categorically opposed to leveraged charitable structures
Three entities. One flow. A donor, an LLC, and a charity — connected by a donation of tangible goods at fair market value.
The Three-Step Flow
1. You Contribute
Invest in a dedicated LLC partnership ($25K min, $1K increments). LLC pools contributions targeting $5M groups.
→
2. LLC Donates
LLC purchases goods at wholesale, donates them to qualified 501(c)(3)s at full retail fair market value.
→
3. You Deduct
Your proportionate share flows via K-1 as a charitable deduction on Schedule A of your 1040.
Timeline — Contribution to Tax Return
1
Invest & Join the LLC
Contribute $25,000+ to your dedicated Offering LLC partnership. Contribution is pooled targeting a $5M group. Paperwork completed and signed.
2
LLC Purchases Gift Certificates
The LLC purchases gift certificates redeemable for tangible goods at wholesale — approximately a 5:1 ratio to purchase price at full retail FMV.
3
Donation to Nonprofit
Gift certificates donated to approved 501(c)(3) organizations. The nonprofit provides contemporaneous written acknowledgment confirming related charitable use — required for IRS compliance.
4
Appraisal & Documentation
A qualified independent appraiser certifies FMV within 60 days of contribution. Form 8283 completed. All compliance documentation prepared and delivered by the program team.
5
LLC Closes, K-1 Issued
Partnership takes the charitable deduction at FMV and closes. Each partner receives a K-1. K-1s issued by end of March following the tax year.
6
Deduction on Your 1040
K-1 flows to Schedule A as a charitable contribution. Subject to 50% AGI limitation. Excess carries forward up to 5 additional tax years.
What You Receive as a Participant
Schedule K-1
Your proportionate share of the charitable deduction from the LLC partnership
Form 8283
Section B completed and attached to your return for noncash contributions over $500
Qualified Appraisal
Independent FMV determination by certified appraiser within 60 days of contribution
Acknowledgment Letter
Written acknowledgment from each 501(c)(3) confirming related use of donated goods
Legal Opinion
"More likely than not" standard — §6664(d) penalty protection. Available under NDA.
Full Tax Prep Support
Program team provides all tax forms, analysis, and ongoing assistance after donation closes
Common Objections
Every objection is a question in disguise. Answer the real question underneath it.
?
"Is this just a tax shelter or syndicated conservation easement in disguise?"
No. This is a charitable contribution of tangible personal property to qualified 501(c)(3) organizations under §170. It is not a conservation easement, not a listed transaction, and not identified in any IRS Notice or Reg. 1.6011-4 reportable transaction list. The leverage comes from a wholesale purchase price lower than the IRS-recognized FMV. The structure is supported by a legal opinion to the "more likely than not" standard.
?
"How can the deduction be 5× my investment? That seems too good to be true."
The leverage works because the LLC purchases at wholesale and donates at fair market value. The goods are sold directly to end-user institutions — not through wholesalers — so the retail price is the proper measure of FMV. Because charitable organizations use the donated goods for "related use," the IRS-recognized deduction equals full FMV under §170(e)(1). An independent qualified appraiser certifies this value annually. This is similar to donating a painting purchased at wholesale to a museum — the deduction equals the museum's FMV, not your cost.
?
"Doesn't the IRS challenge anything with a ratio over 2.5:1?"
The IRS has increased scrutiny on conservation easements with inflated appraisals — a separate target. This program involves tangible personal property, not real estate easements. The valuation is based on documented retail pricing from the manufacturer to end-user institutions — not a speculative or engineered appraisal. Cross Refined Coal, LLC v. Commissioner (D.C. Cir. 2022) confirms that partnerships pursuing Congressional tax incentives have legitimate business purpose even with guaranteed pre-tax losses.
?
"My CPA has never seen this before."
That's common — this is an invitation-only program. The mechanics are straightforward §170 law. The legal opinion (available under NDA) walks through all relevant code sections: §170(e) for FMV deduction on related-use tangible property, §702 for partnership deduction pass-through, §170(b)(1)(A) for the 50% AGI limitation. Most CPAs who review the documentation understand the structure and can confirm compliance.
?
"What's my audit risk?"
Audit risk exists and must be disclosed upfront. The IRS may challenge: (1) the valuation methodology — specifically the wholesale-to-retail ratio; (2) economic substance, though Cross Refined Coal provides strong defense; and (3) partnership allocation documentation. All required documentation — Form 8283, qualified appraisal within 60 days, contemporaneous written acknowledgment, related-use confirmation — is provided. The legal opinion is rendered to the IRC §6664(d) "more likely than not" penalty protection standard.
?
"Is this a listed transaction? Do I have to disclose it?"
This program has not been identified as a listed transaction in any IRS notice and is not identified as a reportable transaction under Reg. §1.6011-4. You are not required to file Form 8886 based on this participation alone. Your CPA should independently confirm this based on current IRS guidance. The legal opinion specifically addresses this question to the "more likely than not" standard.
?
"What do I actually get at the end — is there any asset or return?"
This is a pure charitable giving strategy. There is no physical asset retained, no lease-back, and no expected financial return. The LLC closes after the donation. What you receive is: a K-1, Form 8283, a qualified appraisal, and a contemporaneous acknowledgment letter from the charity. The "return" is reduced federal and potentially state tax liability. Anyone expecting a financial return on capital is not the right fit for this program.
CPA Deep Dive
For CPA conversations and audit-readiness. Every answer sourced from the legal opinion and program documentation.
Core Tax Framework
§170(e)(1)
FMV deduction for tangible personal property donated for related exempt purposes. Equals retail FMV — not donor's cost.
§170(b)(1)(A)
50% of AGI limitation for contributions to public charities. Excess deductions carry forward up to 5 years.
§702(a)(4)
Charitable contribution deduction arises at partnership level and flows to partners. Character preserved under §702(b).
§704(b)
Allocation of charitable deductions must have substantial economic effect. LLC operating agreement includes proper capital account maintenance.
Rev. Rul. 96-11
Partner's basis reduced by share of partnership's cost basis in donated property — not FMV. Long-recognized treatment ensuring deductions exceeding basis are properly reflected.
§721(a) / §722
No gain or loss on cash contribution to LLC for membership interests. Partners take carryover basis equal to cash contributed.
CPA & Audit-Level Q&A
Q
What is the legal standard for the opinion? Does it provide penalty protection?
The opinion is rendered to the "more likely than not" standard — greater than 50% probability the position would be sustained on its merits. Under IRC §6664(d), reliance on a qualified tax opinion meeting this standard may provide penalty protection for underpayment attributable to a tax shelter item. The opinion covers federal tax matters only and is available under NDA.
Q
How is fair market value determined? Is there a risk the IRS rejects the appraisal?
The IRS defines FMV as the price between a willing buyer and seller, neither under compulsion, both with reasonable knowledge of facts. Because donated goods are sold directly to end-user institutions — not through wholesalers — the documented retail price is the proper measure of FMV. A qualified independent appraiser determines FMV annually. The IRS may challenge valuation methodology — this is the primary audit risk — but the appraisal methodology is defensible under established precedent.
Q
How can a partner deduct more than their basis?
Under Rev. Rul. 96-11, when a partnership donates appreciated property, each partner's basis in their LLC interest is reduced by their share of the partnership's cost basis — not the FMV. So a partner who contributed $25,000 has a $25,000 basis. When the LLC donates $125,000 FMV property with $25,000 cost basis, the partner's basis is reduced by $25,000 (to zero), but the $125,000 charitable deduction passes through on their K-1.
Q
What documentation must be in place for the deduction to be valid?
All of the following must be in place: (1) Qualified appraisal within 60 days of contribution by certified appraiser; (2) Form 8283 Section B completed and attached; (3) Contemporaneous written acknowledgment from each recipient charity; (4) Written confirmation of "related use" of donated goods; (5) Partnership operating agreements with proper substantial economic effect provisions. The program team manages and provides all documentation.
Q
Does this require economic substance or a business purpose?
No additional economic substance test applies to charitable contributions under §170. Courts have consistently held §170 deductions are a legislative allowance for personal expenditures. Sacks v. Commissioner (9th Cir. 1995) and Skripak v. Commissioner (84 T.C. 285, 1985) both held that charitable contributions motivated by tax benefits cannot be challenged under economic substance when fulfilling Congressional policy under §170.
Risk Disclosure — Always Share
The IRS may challenge the valuation methodology used to establish FMV relative to purchase price.
Economic substance scrutiny remains possible, though Cross Refined Coal (D.C. Cir. 2022) provides strong defense for Congressional-purpose programs.
Partnership allocation challenges are possible if substantial economic effect requirements are not properly documented.
The legal opinion covers federal tax only. State treatment may differ by jurisdiction.
This is a pure deduction strategy — there is no asset retained, no financial return, and no exit beyond the charitable contribution.
This is not tax advice. All clients must consult their licensed tax advisor and legal counsel before making any decisions.
CPA Deep Dive
For CPA conversations and advanced technical questions on the Leveraged Charitable LLC structure.
Core Tax Framework
The mechanics that make the Charitable LLC work
IRC §170
The governing code section for charitable contribution deductions. Cash contributions to qualifying organizations deductible up to 50% of AGI per year.
50% AGI Cap
The §170(b)(1)(A) limitation. Year 1 deduction capped at 50% of AGI. Excess carries forward for up to 5 years — the full deduction is realized over time.
5-Year Carryforward
Under §170(d)(1), unused charitable deductions carry forward for up to 5 tax years. The full 5× deduction is captured even if it exceeds the annual cap.
5:1 Leverage
The LLC structure allows $1 invested to generate $5 in deductible contributions through the leveraged structure. Flows as a K-1 directly to the investor's 1040.
W-2 Applicability
The deduction flows to Schedule A of the investor's personal return. No business ownership required. Works for any W-2 earner who itemizes deductions.
Invitation Only
The program is invitation-only. Not all investors qualify. Minimum investment and income thresholds apply. Attorney-opined structure with full documentation.
CPA Q&A
The hard questions — answered directly
Q
How does the 5:1 leverage work mechanically?
The investor contributes capital to a leveraged LLC structure. The LLC makes a substantially larger charitable contribution using that capital plus leverage — resulting in approximately $5 in deductible contributions for each $1 invested. The investor receives a K-1 reflecting their share of the charitable contribution, which flows to Schedule A of their personal return. The exact ratio and structure details are covered in the program's attorney opinion letter, available upon request.
Q
Is this related to conservation easements?
No. Conservation easements are a separate strategy covered under IRS Notice 2017-10 and have faced significant IRS scrutiny. The Leveraged Charitable LLC is a distinct cash contribution structure under §170 — not a property or easement-based strategy. The legal opinion specifically addresses this distinction and confirms the structure complies with §170 requirements for cash contributions to qualifying charitable organizations.
Q
Does the client need to itemize?
Yes. Because the deduction flows to Schedule A as a charitable contribution, the client must itemize deductions on their federal return rather than taking the standard deduction. For high-income W-2 earners — the target client — itemizing is almost always more advantageous at these income levels. The advisor should confirm itemized deductions exceed the standard deduction before recommending the strategy.
Q
What documentation does the client need for the deduction?
The client will receive a K-1 reflecting their share of the charitable contribution from the LLC. The charitable organization must provide a contemporaneous written acknowledgment (CWA) for contributions over $250 per §170(f)(8). The attorney opinion letter and all supporting documentation are provided as part of the program and should be retained with the client's tax records.
Q
What are the risks?
The primary risk is IRS audit of the valuation and structure. Because leveraged charitable strategies have been subject to scrutiny historically, the program maintains attorney opinions and full documentation to support the deduction. The client should be aware that (1) the IRS may challenge the structure, (2) if disallowed, the deduction and any applicable penalties could apply, and (3) the investment itself carries normal investment risk. Always recommend clients consult their own CPA and legal counsel before participating.
Everything in One Place
Resource Center
Training videos, program documents, and email templates for the Leveraged Charitable LLC strategy.
Training Videos
Upload & organize your training library
Program Overview
How the Charitable LLC works — 5:1 leverage, §170, and W-2 earners
+ Upload Video
Pitch Walk-Through
How to open the conversation with a high-income W-2 earner
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CPA Conversation Guide
Walk a CPA through §170, the 50% AGI cap, and carryforwards
+ Upload Video
Objection Handling
Live role-play of the most common objections
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Relevant Documents
Program materials, legal opinions & compliance docs
Legal & Tax
Program Legal Opinion
Click to upload
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Charitable LLC Structure Doc
Click to upload
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Client Intake / Application
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Key References
IRC §170 · 50% AGI cap for cash contributions · 5-year carryforward · IRS Notice 2017-10 (conservation easements — distinct) · W-2 applicability via Schedule A
Subject: A charitable deduction strategy that generates 5× the write-off on your W-2 income
Hi [First Name],
As a W-2 earner, your tax deduction options are limited. Your CPA has probably told you there's not much to do beyond maxing your 401(k) and hoping for itemized deductions.
I want to show you a structure that changes that. Through a leveraged charitable LLC, a $100,000 investment generates $500,000 in charitable deductions — a 5:1 ratio. The deduction flows directly to your Schedule A against your W-2 income. No business required.
A corporate attorney I work with reduced their federal tax by $120,000 in Year 1 on a $100K investment.
Would you have 20 minutes to see if the numbers work for your situation?
[Your Name]
2️⃣
CPA Introduction Email
Sent to the prospect's CPA
Expand ↓
Subject: Leveraged Charitable LLC for [Client Name] — §170 deduction — requesting your review
Hi [CPA Name],
I'm working with your client [Client Name] on a leveraged charitable LLC structure and wanted to bring you in before any decisions are made.
The structure generates a §170 charitable deduction at approximately a 5:1 ratio on the investment amount. For W-2 earners, the deduction flows to Schedule A. The 50% AGI cap applies in Year 1, with a 5-year carryforward for any excess.
Key code sections: IRC §170, 50% AGI limitation, 5-year carryforward.
Happy to provide full documentation and walk through the structure on a call.
[Your Name]
3️⃣
Follow-Up After Numbers Review
Sent after running the calculator with the prospect
Expand ↓
Subject: Your Charitable LLC numbers from today — $[Savings] in estimated tax savings
Hi [First Name],
Great speaking with you today. Here's what we modeled:
• W-2 Income: $[Income]
• Investment: $[Investment]
• Gross Deduction (5×): $[Deduction]
• Year 1 Deductible (50% AGI cap): $[Year1]
• Carryforward: $[Carry]
• Est. Federal Tax Saved (Yr 1): $[Savings]
Next step: loop in your CPA. I can send them the program documentation and legal opinion directly.
[Your Name]
4️⃣
Year-End Urgency
Sent Q4 to prospects who haven't committed
Expand ↓
Subject: Charitable LLC — contribution must be made before December 31
Hi [First Name],
To take the §170 deduction in this tax year, the contribution must be made before December 31.
Based on what we modeled, you're looking at approximately $[Savings] in estimated federal tax savings in Year 1 on a $[Investment] contribution.
If your CPA has reviewed it, we can move quickly. Let me know.
[Your Name]
W-2 Earners & Business Owners · §168(k) Bonus Depreciation
BoxHouse
The World's Fastest Rapidly Deployable Home · Tax-Advantaged Disaster Housing Investment
W-2 & Business
Works for W-2 earners ($515K+ joint / $185K+ single) and business owners
100%
Year 1 bonus depreciation under §168(k) — restored via OBBBA 2025
$0
Tax liability achievable for qualifying investors
Investor Profile — The Most Underserved Client in Financial Planning
W-2 High-Income Earner
Why W-2 Earners Are Your Best Prospect
W-2 employees — physicians, attorneys, engineers, executives — are among the highest-taxed individuals in America. Unlike business owners, they have almost no traditional tax reduction tools. A 401(k) barely moves the needle. Their CPA has told them for years there's nothing they can do. This changes that conversation entirely.
Your Competitive Edge
Most advisors ignore W-2 earners for tax strategy because they assume nothing applies. You now have a legitimate, CPA-approved structure that eliminates — not defers — their tax liability in Year 1. No one else in the room is offering this. That's your separation.
W-2 income: $515K+ joint · $185K+ single
Also works for self-employed & high-income business owners
Minimum entry: $70,000 down (MiniBox) up to $130K (Duplex)
Bonus depreciation offsets W-2 income dollar-for-dollar in Year 1
Units leased back — you own the asset, we operate it
Non-passive losses via material participation — fully deductible against W-2
Primary W-2 Targets
Physicians & Surgeons
Dentists & Specialists
Attorneys & Partners
Tech Executives
Investment Bankers
Airline Pilots
Corporate Executives
Pharmacists
+ Any W-2 Earner with a Big Tax Bill
Also Strong Candidates
Business Owners
Contractors
Real Estate Investors
Self-Employed Professionals
Opening Scripts
Lead with the problem — everyone knows disaster housing is broken
Option 1 — Tax Angle
"Have you ever looked at whether a real asset purchase could eliminate a significant portion of your tax bill this year — not defer it, actually wipe it out through bonus depreciation on a physical housing asset you own?"
Option 2 — Humanitarian / Mission Angle
"After Maui, after Helene, after the LA fires — how long did families wait for real housing? Months. Years. What if you could own the solution that changes that — and reduce your tax liability in the process?"
Then transition into
"BoxHouse is a foldable, steel-framed emergency housing unit that deploys in half a day — no foundation required. Two private homes ship in a single 40-foot container, by truck, rail, or ship. You purchase units through a trust-based structure where you own the asset, it gets leased back and deployed to disaster zones, and the full purchase price depreciates in Year 1 via bonus depreciation. A physician with a $1.83M income investing in 2 Duplexes and a Bungalow reduced their tax liability from $733,938 down to $3,585. The asset doesn't disappear — it goes to work housing families displaced by the next major disaster."
Advisor Note
BoxHouse is a real asset investment — not a paper tax strategy. The units are physically deployed to disaster zones, generating lease revenue. The tax benefit flows from the real economic activity of owning and operating emergency housing.
Case Studies
Real numbers — confirm with CPA
Physician · Illinois
2 Duplexes + 1 Bungalow
Income$1,830,000
Tax Without Strategy$733,938
Cash Out of Pocket$360,000
Tax After Strategy$3,585
Net Savings$370,353
TOTAL TAX SAVINGS
$730,353
Contractor · Montana
4 Duplexes
Income$2,600,000
Tax Without Strategy$1,098,456
Cash Out of Pocket$520,000
Tax After Strategy$0
Net Savings$578,456
TOTAL TAX SAVINGS
$1,098,456
Tech Employee · Colorado
1 MiniBox
Income$375,000
Tax Without Strategy$101,307
Cash Out of Pocket$70,000
Tax After Strategy$0
Net Savings$31,307
TOTAL TAX SAVINGS
$101,307
* Depreciation figures based on §168(k) bonus depreciation applied to unit purchase price. For illustration only. Consult your tax advisor.
Run Their Numbers Now
Income, filing status, state — see federal + state picture instantly
$
Federal Tax
State Tax
Combined Rate
Est. Tax Eliminated
Recommended Unit(s)
Enter income, filing status, and state to see the full tax picture
One-Liner Follow-Ups
For when they ask the next question
It's real hardware: BoxHouses are foldable, steel-framed homes — physically manufactured, transported, and deployed. This is not a paper asset.
The tax benefit is straightforward: You own the unit. Bonus depreciation offsets your income dollar-for-dollar in Year 1. Your CPA will recognize this immediately.
Demand isn't speculative: FEMA, state agencies, and humanitarian organizations need scalable housing now. BoxHouse has government and disaster relief contracts driving demand.
Inventory is genuinely limited: Year 1 sold 200 units. Year 2 sold 400. Year 3 started with 1,500 — 1,000 are already committed.
You own a redeployable asset: When a deployment ends, the BoxHouse folds back up, ships to the next location, and keeps generating lease revenue.
#1 Question We Get
"Is this passive income or active — and does it matter for my taxes?"
✗ Passive Activity
Losses can only offset passive income. High W-2 earners get suspended losses — they don't touch your tax bill this year.
✓ Non-Passive (This Structure)
The Trustee (EverReady Solutions) materially participates. That activity flows through the grantor trust directly to you. Losses are non-passive and fully deductible against W-2 in Year 1.
Why It Holds Up
The standard is "regular, continuous, and substantial" involvement (Temp. Reg. §1.469-1T). Because the trust is a grantor trust under §§671-679, the trustee's active management is treated as your participation. Two court cases confirmed this: Mattie K. Carter Trust v. U.S. (2003) and Frank Aragona Trust v. Commissioner (2014). The IRS has tested this — and lost.
Qualifying Your Investor
Two minutes of qualification saves two hours of wasted presentation. Let the numbers do the qualifying.
Tax Savings Calculator
Enter their situation — instantly see which unit fits and what they save, federal + state
$
Federal Tax
State Tax
Combined Rate
Est. Tax Eliminated
Recommended Unit(s)
Enter income, filing status, and state to see the full tax picture
Green Lights ✓
Move Forward
✓W-2 income $185K+ single / $515K+ joint
✓Self-employed or business income with significant tax bill
✓Can invest $70K–$520K+ in Year 1
✓Works with a CPA or tax advisor
✓Interested in owning a real, tangible asset
✓Willing to materially participate in the trust
✓Resonates with the humanitarian mission
Red Flags ✗
Pause or Pass
✗Minimal or no significant tax liability to offset
✗Expects guaranteed fixed returns or instant liquidity
✗Unwilling to materially participate
✗Purely passive investor — no involvement desired
✗Needs capital back within 12 months
✗CPA categorically opposed without reviewing structure
The 3 Qualifying Questions
Ask naturally — never like a checklist
"When your accountant shows you what you owe in April — how much of that do you feel like you actually have any control over?" — Most W-2 earners will say very little. That's your entry point.
"Have you looked at any real asset plays — something you physically own — where the depreciation works in your favor in Year 1?" — Surfaces tax awareness and investment appetite.
"Are you familiar with what's happening in disaster housing right now — the gap between what FEMA can provide and what displaced families actually need?" — Connects the investment to a mission they can feel good about.
Common Objections
Every objection is a question in disguise. Answer the real question underneath it.
?
"Is this just a tax gimmick?"
No. This is 100% bonus depreciation applied to a VIN-registered mobile steel trailer under §168(k) — restored by the OBBBA for 2025. The BoxHouse is classified as 6-year MACRS property, not real estate. When you purchase a unit, the full cost (down payment + financed amount) is deductible in Year 1. Same code contractors use to write off heavy equipment. Legal opinions drafted by Fabian VanCott. Your CPA will recognize the mechanics immediately.
?
"What do I actually own?"
You own a physical, VIN-registered BoxHouse — a foldable, steel-framed home. Your Trust (named "Ironwood 1, 2, 3, etc.") holds 99% of the Series LLC, which owns the unit. Because it's a grantor trust under §§671-679, you are treated as the direct owner for tax purposes. Title flows through the trust; depreciation flows to you directly. You don't need to hold title personally.
?
"What if nobody needs the units — what's the revenue story?"
Units currently deployed generate an average of $900/month after debt service. BoxHouse government contracts (FEMA and agencies) have the potential to be significantly higher, but are not yet in place. Contingency: if BoxHouse deployment revenue doesn't materialize before the first debt payment is due, the unit pivots to alternative uses already proven to cash flow. BoxHouse is contractually obligated to deploy units only where they will immediately cash flow.
?
"This sounds complicated — how does the trust structure work?"
You contribute funds as the Settlor and are named the Beneficiary of the Trust. EverReady Solutions acts as Trustee and manages all operations — finding clients, deploying units, collecting rent, and maintaining assets. A Series LLC (99% Trust-owned, 1% Parent LLC) is the operating entity that owns and operates the BoxHouse. BoxHouse manufactures and finances the unit. Because the trust is a grantor trust, all tax items flow directly to you. Your attorney and CPA review all trust documents before you sign. The $5,000 startup fee covers bookkeeping, tax prep, and records for the first two years.
?
"My CPA hasn't seen this before."
That's common. The mechanics — §168(k) bonus depreciation on VIN-registered tangible personal property, flowing through a grantor trust via §§671-679 — are well-established. BoxHouse provides full documentation including legal opinions from Fabian VanCott and supporting court cases. Mattie K. Carter Trust (2003) and Frank Aragona Trust (2014) are specifically included for CPA review. Most CPAs who review the documentation approve the structure and refer other clients.
?
"How do I get my money back — what's the exit?"
Two paths. Path 1 (Goal): the Series generates revenue through lease contracts; a future sale or distribution returns your capital plus gain. Path 2 (Safety Net): the Trust abandons its Series membership interest. Because abandonment is not a sale or exchange, it does not trigger depreciation recapture. The debt stays in the Series. The Trust then toggles to non-grantor, and you exit cleanly — you got the Year 1 deduction and exit without recapture regardless of investment results. The abandonment documents are drafted by the attorney; EverReady Solutions signs as Trustee.
?
"Is there a debt guarantee — am I on the hook?"
Yes, the Trust provides a guarantee of the Series LLC's obligations under the Promissory Note. This is actually required — it's what establishes your "at-risk" basis under §465, which is necessary to claim the depreciation deduction. Following any abandonment, the obligation remains with the Series and EverReady Solutions (as trustee) becomes responsible for the debt. You are at risk for the amount contributed plus obligations guaranteed by the Trust — this is clearly disclosed upfront.
The BoxHouse Product Line
The Houses
Three models. Each engineered for rapid deployment. Each a real, depreciable asset.
The MiniBox
Most Practical · Entry Level
Our most accessible design — essentials in a disaster. Includes washer/dryer and compact kitchen. Configurable to accommodate anyone.
Investment
$70K Down / $350K Total
Depreciation Value
$350,000
The Bungalow
Family-Ready · 380 sq ft · 19' × 20'
Modern dwelling maximizing living space. Includes washer/dryer and full-size kitchen. Accommodates families in a safe, comfortable environment.
Investment
$100K Down / $500K Total
Depreciation Value
$500,000
️
The Duplex
Max Efficiency · 2 Private Units · 19' × 20'
Two equal units — each with private entrance, full kitchen, bedroom, and modern bathroom. Maximum housing density per unit shipped.
Investment
$130K Down / $650K Total
Depreciation Value
$650,000
What Makes BoxHouse Different
6 core advantages over traditional emergency housing
Mobile & Rapid Deployment
Foldable, steel-framed — no foundation required. Deployable on all soil types and parking lots.
Efficient Transport
Two homes fit in a single 40-foot container. Ship by truck, rail, or sea. Mobilize at a moment's notice.
Protected & Safe
Shielded from moisture, mold, rust, and structural hazards in the container — health-safe until deployment.
Quick Setup
Patented design — move-in ready in hours. No foundation, no crew, no delay.
Built to Last
High-quality, durable steel — stronger than traditional manufactured housing, engineered for extreme environments.
Redeployable
When no longer needed, folds back up and ships to the next deployment — maximizing your asset's working life.
Technical Specs — Bungalow & Duplex
19' × 20' Footprint
380 sq ft (Bungalow) / 190/side (Duplex)
Aluminum/Steel Roof
Fiberglass/XPS Walls
Composite EPS/PET/XPS Insulation
60A Total Power Supply
LVP Flooring
LED Lighting · Pre-wired
PVC/PEX Plumbing
Deep Due Diligence
CPA Deep Dive
For CPA conversations, advanced objections, and audit-readiness. Every answer sourced from BoxHouse's official Q&A.
Core Tax Framework at a Glance
The code sections that make this work
§168(k)
100% bonus depreciation — restored via OBBBA for 2025. Full cost deducted Year 1.
§465
At-risk rules. Trust guarantee of the Promissory Note provides recourse — basis in the debt is established.
§469(h)
Material participation = regular, continuous, substantial involvement. Met via trustee (EverReady Solutions) activity logs.
§671–679
Grantor trust rules — trust is disregarded; income, losses, and character flow directly to the grantor/buyer.
§704(b)
Allocations must follow economic substance. The 99% Trust / 1% Parent split reflects real economics.
§461(l)
Excess Business Loss limits. Deductions offsetting non-business income subject to EBL caps — CPA should confirm.
All Parties Involved
Know who does what before the CPA asks
BoxHouse
The program sponsor. Manufactures and manages the BoxHouse emergency housing program. Contact: (435) 862-7767 · kason@highlandsteel.homes
BoxHouse
Manufacturer, Seller, and Lender. 3 plants in China, 1 in NC, warehousing/R&D in Hurricane, UT. Insures all deployed units.
Deployment Platform
The deployment arm of BoxHouse. Contractually obligated to deploy units only where they will immediately cash flow.
The law firm that drafted the legal opinions supporting the trust structure and tax treatment.
The Buyer
Settlor and beneficiary of the Trust ("Ironwood 1, 2, 3…"). Owns 99% economic interest. At-risk for contributions + guaranteed debt. Receives K-1 with grantor's SSN.
CPA & Audit-Level Q&A
The hard questions — answered directly
Q
Why isn't the depreciation subject to passive activity loss limitations under §469?
The depreciation deductions are not subject to the passive loss rules because the activity is not passive with respect to the grantor. The Parent LLC (EverReady Solutions), acting as trustee and manager of the Series LLC, materially participates in the trade or business — deployment, leasing, maintenance, and administration of units. This material participation is imputed through the Series LLC to the irrevocable grantor trust. Since the trust is a grantor trust, all items of income, deduction, and credit — including depreciation — are treated as belonging directly to the grantor under Subchapter J. Activity is non-passive; losses are fully deductible currently.
Q
How is material participation substantiated if the IRS audits?
Activity logs are maintained documenting EverReady Solutions' work. The standard is "regular, continuous, and substantial" per Temp. Reg. §1.469-1T(b)(2). IRS TAM 201317010 recognizes trustee participation where the trustee actively manages the business. Additionally, Reg. 1.469-4(c) allows grouping related undertakings as one "economic unit." Two court cases directly confirm trustee participation counts: Mattie K. Carter Trust v. U.S. (N.D. Tex. 2003) and Frank Aragona Trust v. Commissioner (142 T.C. 376, 2014).
Q
Does the buyer need to own the unit directly to claim bonus depreciation?
No. The Series LLC owns the unit. The Trust owns 99% of the Series. Because it's a grantor trust, the buyer is treated as the direct owner for tax purposes under §§671-679. The bonus depreciation flows straight to the buyer. The buyer does not need to take title to the physical unit.
Q
How is the BoxHouse classified for depreciation purposes?
The unit is classified as a VIN-registered mobile steel trailer — not real property. Under MACRS it is 6-year property. Because initial use occurs after January 20, 2025, and because 100% bonus depreciation was restored via the OBBBA for 2025, the entire cost (down payment + financed amount) is deductible in Year 1 under §168(k). The buyer can deduct the full purchase price — not just the cash contributed.
Q
How does economic substance work with a 99%/1% split?
The 99% Trust / 1% Parent LLC split reflects real economic substance. Under §704(b), allocations must have economic effect. This structure creates a legitimate business opportunity with potential revenue through managed services and unit availability. The tax benefits are available but are not the sole or primary purpose — the program creates a meaningful change in economic position. The Delaware Protected Series LLC structure is recognized under 6 Del. C. §18-215.
Q
What happens when the buyer wants to exit — is there depreciation recapture?
Two exit paths. Path 1 — Profitable Sale: the Series generates sufficient revenue and a future sale returns enough to cover recapture plus a return. Path 2 — Abandonment: the Trust abandons its Series membership. Because abandonment is not a "sale or exchange," it does not trigger recapture income. The debt remains within the Series; the Trust's guarantee survives. EverReady Solutions becomes responsible for the debt. The Trust then toggles to a non-grantor trust, allowing the grantor to exit cleanly without depreciation recapture. Abandonment documents are attorney-drafted; the Trustee signs on behalf of the Trust.
Q
Is there any risk of Cancellation of Debt Income (CODI)?
Debt forgiveness is not part of the structure or plan — the buyer is legitimately at-risk under §465 and maintains basis in the debt. In a worst-case scenario where debt is forgiven: if the Trust has already toggled to non-grantor prior to any forgiveness, CODI would flow to the Trust. A solvency calculation would be performed; Form 982 is used to exclude CODI to the extent of insolvency under §108(a)(1)(B). A 1099-C would be issued. This is an acknowledged legal backstop — not a planned event.
Q
Will the buyer receive a Schedule K-1?
Yes. The Series issues a K-1 to the Trust — using the Trust name and the grantor's Social Security number. The trust is a pass-through entity and does not issue its own K-1 because it is not a separate taxpayer. The deduction flows through the Trust to the buyer and is reported on the buyer's personal return. K-1s are issued by end of March.
Q
What are the fees and what do they cover?
The fixed $5,000 startup fee covers bookkeeping, tax prep, and record-keeping for the first two tax years. After Year 2, ongoing costs are approximately $2,500/year. The Parent/Trustee deducts a management fee of approximately 10% from operational revenue.
Advisor Quick Reference
Key facts every advisor should know cold
→
The Crisis Numbers — Know Them
Maui wildfires: 2,200+ homes destroyed, 102 lives lost, only 45 homes rebuilt as of August 2025. Hurricane Helene: $79 billion in damages, 252 lives lost, 126,000 homes damaged in NC alone, 220,000+ households applied for FEMA aid. LA Palisades Fire: 1.5-year rebuild timelines, rents spiked 20–100%. FEMA's existing solutions — hotel vouchers, trailers, rental assistance — are slow, costly, and inadequate.
→
Traction & Scale — "Is This Real?"
Year 1: 200 units sold. Year 2: 400 units (2× growth). Year 3: 1,500 available, 1,000 already committed. The Strategic Housing Reserve maintains a stockpile equal to 1,000 homes ready for dispatch within days. Manufacturing: 3 plants in China, 1 in North Carolina, warehousing and R&D at 2020 Flora Tech Rd., Hurricane, UT 84737. Austin, TX facility under consideration.
→
Revenue — What Units Currently Generate
Units currently in service generate an average of $900/month after debt service on non-BoxHouse contracts. BoxHouse government contracts have the potential to generate significantly more, but are not yet in place. Contingency: units pivot to alternative uses already proven to cash flow if BoxHouse revenue doesn't materialize before the first debt payment. Ongoing costs after Year 2: ~$2,500/year for bookkeeping and tax prep. Trustee management fee: ~10% of operational revenue.
→
Exit Options — The Two Paths
Path 1 (Goal): The Series generates enough revenue for a future sale or distribution to return capital plus gains covering recapture. Path 2 (Safety Net): The Trust abandons its Series membership. Abandonment is not a sale or exchange — no recapture triggered. Debt stays in the Series. Trust toggles to non-grantor. Grantor exits cleanly without depreciation recapture. If debt is later forgiven: CODI flows to the Trust, §108(a)(1)(B) insolvency exception may apply. Debt forgiveness is not part of the plan — legal backstop only.
→
Risks — State Them Upfront
(1) Buyer is at risk for amount contributed plus obligations guaranteed by the Trust. (2) Depreciation recapture possible upon disposition. (3) Potential CODI if obligations discharged. (4) Operating expenses and management fees reduce distributable cash flow. (5) No minimum profit, revenue, or tax outcome guaranteed. (6) BoxHouse government contracts not yet in place. Always direct clients to their CPA and legal counsel. Legal opinions provided by Fabian VanCott.
Risk Disclosure — Always Share
The buyer is at risk for the amount contributed to the Trust and for obligations guaranteed by the Trust.
The buyer may be subject to depreciation recapture upon disposition of the BoxHouse unit.
The buyer may be allocated income from Cancellation of Debt (CODI) if obligations are discharged.
Future operating expenses of the Series (including management fees) will reduce distributable cash flow.
Neither BoxHouse nor the Parent LLC guarantees any minimum profit, revenue, or tax outcome.
BoxHouse government contracts are not yet in place — revenue depends on deployment demand materializing.
CA, IL, NJ, NY do not conform to federal bonus depreciation — state benefit may not apply. Confirm with CPA.
Everything in One Place
Resource Center
Training videos, CPA documents, agent materials, and email templates — organized for advisors and CPAs alike.
Training Videos
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Program Overview
How ReadyPod works — start here for new advisors
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W-2 Pitch Walk-Through
How to open the conversation with a high-income W-2 prospect
+ Upload Video
CPA Conversation Guide
Walk a CPA through the §168(k) structure and legal opinion
+ Upload Video
Objection Handling
Live role-play of the most common objections
+ Upload Video
Relevant Documents
Legal opinions, tax references, compliance docs & program materials
Subject: A tax strategy built for W-2 earners like you
Hi [First Name],
Most tax strategies require owning a business or real estate. As a W-2 earner, you've probably heard from your CPA that your options are limited.
I came across a structure specifically suited for high-income W-2 earners. It involves purchasing a physical emergency housing unit — a foldable, steel-framed home deployed to disaster zones — where the full purchase price depreciates 100% against your W-2 income in Year 1 under §168(k). Not deferred. Eliminated.
A physician I work with had a $733,000 tax bill. It came down to $3,500.
The losses are non-passive — the structure uses a grantor trust with active management, so they flow directly against your W-2 income. Your CPA will recognize the mechanics immediately.
Would you have 15 minutes? I can run the numbers for your specific income and state before we talk.
[Your Name]
2️⃣
CPA Introduction Email
Sent by advisor to the prospect's CPA to open the review conversation
Expand ↓
Subject: §168(k) bonus depreciation structure for [Client Name] — requesting your review
Hi [CPA Name],
I'm working with your client [Client Name] on a tax strategy and wanted to bring you in before any decisions are made.
The structure involves purchasing a VIN-registered mobile housing unit (6-year MACRS property) through a Delaware grantor trust. The full purchase price — down payment plus financed amount — depreciates 100% in Year 1 under §168(k), restored via the OBBBA for 2025. Because the trustee (EverReady Solutions) materially participates in operations, the losses are non-passive under §469 and flow directly against [Client Name]'s W-2 income.
Key code sections: §168(k), §465, §469(h), §671–679, §704(b).
Supporting case law: Mattie K. Carter Trust v. U.S. (N.D. Tex. 2003), Frank Aragona Trust v. Commissioner (142 T.C. 376, 2014).
Legal opinions drafted by Fabian VanCott — available upon request.
Happy to walk through the framework on a call at your convenience.
[Your Name]
3️⃣
Follow-Up After Calculator Review
Sent after running numbers — keeps momentum
Expand ↓
Subject: Your numbers from today — $[Tax Eliminated] in estimated tax on $[Investment]
Hi [First Name],
Great speaking with you today. Here's a summary of what we modeled:
• W-2 Income: $[Income]
• State: [State]
• Recommended Unit(s): [Unit]
• Cash Out of Pocket: $[Down]
• Est. Federal Tax Eliminated: $[Fed Savings]
• Est. State Tax Eliminated: $[State Savings]
• Combined Rate: [Rate]%
Next step is to loop in your CPA. I can send them the legal opinions from Fabian VanCott, the code sections, and the two supporting court cases directly — just share their contact and I'll reach out.
[Your Name]
4️⃣
Year-End Urgency Reminder
Sent in Q4 to qualified prospects who haven't yet committed
Expand ↓
Subject: Tax year closes Dec 31 — your depreciation window is narrowing
Hi [First Name],
To take the bonus depreciation deduction in this tax year, the unit must be placed in service before December 31.
Based on what we modeled, you're looking at approximately $[Tax Savings] in estimated tax eliminated on a $[Investment] contribution — flowing directly against your W-2 income in Year 1.
If you'd like to move forward, the next step is getting your CPA on board. I can send them everything they need today. Or if they've already reviewed it, we can go straight to the intake form.
Let me know how you'd like to proceed.
[Your Name]
(435) 862-7767 · kason@highlandsteel.homes
For Advisors
1
Identify the prospect — W-2 earner $185K+ single / $515K+ joint. Physicians, attorneys, pilots, tech execs, bankers.
2
Open with the W-2 angle — use the openers on the Pitch tab, run the calculator together.
3
Send the follow-up email — use Template 3 above with their actual numbers filled in.
4
Bring in the CPA — use Template 2; share legal opinions and CPA Deep Dive tab.
5
Submit intake — once CPA has signed off and client is committed, submit the Investor Intake Form.
For CPAs Reviewing for a Client
1
Start with CPA Deep Dive — full tax framework, §168(k) mechanics, material participation, case law, audit Q&A.
2
Request the legal opinions — Fabian VanCott documents available upon request from BoxHouse.
3
Run the calculator — use the Qualify tab to model income, filing status, and state.
4
Confirm material participation — review EverReady Solutions' activity logs and the Mattie K. Carter / Frank Aragona precedents.
5
Verify state conformity — CA, IL, NJ, NY do not conform; federal benefit still applies.
Non-Qualified Pension Plan · Business Owners with W-2 Income
Corporate Sponsored Group Life
~50% Up-Front Deduction · IUL Growth with 0% Floor · Tax-Free Retirement Income
~50%
Up-front corporate deduction on cost of insurance paid
0% Floor
IUL cash value never loses value when the market drops
Tax-Free
Retirement income accessed via policy loan — not ordinary income
The 30-Second Pitch
Lead with the outcome — never the product name
"Bob, what if I could show you a retirement plan where roughly half your contribution is deductible upfront, your money grows linked to the market but protected from losses, and when it's time to take income you pull it out completely tax-free — all inside a corporate-sponsored employee benefit that's been in the tax code since 1953?"
If they lean in, add:
"It's called a Corporate Sponsored Group Life plan — a CSGL. The corporation purchases a permanent group life policy as an employee benefit. The cost of insurance is a corporate tax deduction — roughly 50% of what goes in. The employee personally owns an Indexed Universal Life policy that builds cash value tied to the S&P 500 with a 0% floor. At retirement, income is accessed tax-free through policy loans. It predates ERISA and every retirement plan you know — and most CPAs have never seen it."
It's been in the tax code since 1953: Pre-dates ERISA, the 401(k), and the SEP IRA. Not new — just not widely marketed.
The corporation gets the deduction, the employee keeps the policy: The business writes off the cost of insurance. The owner's personal IUL accumulates the value.
It's selective: Unlike qualified plans, this can be offered to specific key employees — it doesn't have to cover everyone.
It's not a tax shelter: This is a legitimate corporate-sponsored employee benefit. The deduction is for the cost of insurance — a real business expense.
$100K/Yr · Male Age 42 · 10 Years
Distributions Age 51–100 + Age 100 Death Benefit · Pacific Life Horizon IUL 2
No Leverage
$120,000/yr
$6.0M distributions + $1.8M death benefit
Baseline
0.50% Spread
$156,000/yr
$7.8M distributions + $2.5M death benefit
+30%
1.6% Spread
$188,000/yr
$9.4M distributions + $3.6M death benefit
+56%
2.5% Spread
$220,000/yr
$11.0M distributions + $4.5M death benefit
+83%
Leverage uses index loan arbitrage — net positive credit applied to policy when index credit exceeds loan charge. For illustration purposes only. Past performance does not guarantee future results.
Why CSGL Wins
vs. SEP IRA & Cash Balance Plan
Up to $410,000/yr — dwarfs SEP IRA ($72K) and Cash Balance ($133K)
Tax-free distributions via policy loan — both SEP IRA and Cash Balance are fully taxable at ordinary income rates
No IRMAA surcharge risk — policy loan income doesn't count as MAGI
0% floor on growth — cash value never credited below zero in a down market
Selective enrollment — offer only to the owner and key executives
Death benefit included — permanent life insurance throughout the plan
Who Should Be Thinking About This?
Any profitable business with a key person worth rewarding
Dental & Medical
Contractors
Professional Services
Manufacturing
Tech Companies
Retail & Service
+ Any Profitable Business w/ W-2 Owner
Qualifying Your Prospect
Two minutes of qualification saves two hours of wasted presentation. Start with the calculator.
Retirement Income Estimator
Enter their situation — see projected distributions and corporate deduction instantly
$
Annual Distribution
Total Distributions
Age 100 Death Benefit
Est. Corp Deduction/Yr
Enter annual funding amount above to see projected distributions and corporate deduction
Green Lights ✓
Move Forward
✓Business owner with W-2 income / reasonable compensation
✓Paying significant federal/state income tax annually
✓Frustrated with qualified plan contribution limits
✓Wants to selectively reward key employees or themselves
✓Has a CPA or tax advisor they work with
✓Insurable — can pass a medical exam
Red Flags ✗
Pause or Pass
✗No W-2 income or unreasonable compensation structure
✗Uninsurable or major health concerns
✗Opposed to life insurance as a financial vehicle
✗Expects guaranteed returns or zero market risk
✗Needs to access funds within 5 years
✗CPA hostile without reviewing the structure
The 3 Qualifying Questions
Ask naturally — never like a checklist
"Have you ever hit the ceiling on your 401(k) or SEP and felt like you were still writing a huge check to the IRS with nowhere else to put the money?" — Almost every profitable business owner says yes. That's your opening.
"Are there one or two people in your business — yourself included — that you'd want to do something significant for, without having to extend it to everyone?" — Surfaces the selectivity benefit and separates CSGL from qualified plans.
"When you think about retirement income, are you factoring in what you'll actually net after taxes — or just what the account balance says?" — Opens the door to the tax-free distribution conversation.
How CSGL Works
Two moving parts: a corporate deduction and a personally-owned IUL. Understanding both is the whole story.
The Structure — Step by Step
From enrollment to tax-free retirement income
1
Corporation Establishes a Group Life Benefit
The business sets up a corporate-sponsored group life insurance plan as an employee benefit. The corporation is the plan sponsor — not the policy owner. This framework, implemented in the U.S. Tax Code in 1953, is what makes the deduction possible.
2
IUL Policy Is Issued to the Employee
An Indexed Universal Life (IUL) policy — through Pacific Life — is issued with the employee as the personal owner. The corporation pays the premiums as a corporate expense. The cost of insurance (~50%) is deductible to the corporation. The remainder builds cash value inside the employee's personally-owned policy.
3
Cash Value Grows Indexed to the Market — With a Floor
Premiums are swept into index accounts. The 1-Year S&P 500 indexed account yields between 0% and 10%. In a down market, the floor is 0% — the policy never loses cash value. With Performance+ multipliers (2.70x), historical average: 12.03% (2005–2025).
4
Index Loans Create Tax-Free Income at Retirement
Income is accessed by borrowing against the policy's cash value. Policy loans are not taxable income. Pacific Life lends the cash — the policy is collateral. The full cash value continues to earn index credits including collateralized amounts. Historical average net arbitrage: 2.33%–7.13% annually.
5
Death Benefit Passes Income-Tax Free to Heirs
The IUL includes a permanent death benefit throughout the plan. At age 100, the remaining death benefit ranges from $1.8M (no leverage) to $4.5M (2.5% spread scenario) based on a $100K/yr, 10-year illustration.
Index Loan Mechanics — The Arbitrage
How the policy earns while you borrow · Pacific Life Horizon IUL 2
When a policy loan is taken, Pacific Life lends cash using the policy as collateral. Interest is charged only on the outstanding loan. The full cash value continues to earn index credits — including collateralized amounts. If index credit exceeds the loan charge, the difference is a net positive credited to the policy.
Scenario A · Moderate
6.00%
6.00% – 4.90% loan
+1.10% net
Scenario B · Strong
10.00%
10.00% – 4.90% loan
+5.10% net
Scenario C · Down
0%
0% – 4.90% loan
−4.90% net
Historical Average (2005–2025): 1-Year S&P 500 averaged 7.23% → average loan arbitrage of 2.33%. With Performance+ (2.70x), average credit was 12.03% → average arbitrage of 7.13%. Past performance does not guarantee future results.
Plan Comparison
CSGL vs. SEP IRA vs. Cash Balance · 42-Year-Old, $500K Salary
Feature
✦ CSGL
SEP IRA
Cash Balance Plan
Tax Code
1953 — pre-dates ERISA
1978
1978
Contribution Limit
$410,000 (reasonable W-2)
$72,000
$133,000 (age-based)
Corp Deduction
~50% (cost of insurance)
100% (IRA) / 0% (Roth)
100%
Distribution Tax
Non-taxable via policy loan
Ordinary income
Ordinary income; may trigger IRMAA
Market Downside
0% floor — never loses value
Full market exposure
Varies
Selective?
Yes — key employees only
No — all eligible
No — all eligible
Death Benefit
Permanent — income tax free
None
None
Admin Cost
$400/policy/year
None
$2,000–$4,000/year
Common Objections
Every objection is a question in disguise. Answer the real question underneath it.
?
"I don't like life insurance as an investment."
That's a fair instinct — most life insurance shouldn't be used as an investment. This is different. The IUL is the mechanism that creates the corporate deduction and delivers tax-free retirement income. You're not buying it for the death benefit — you're using it to create a corporate deduction today and tax-free income at retirement. The insurance is the vehicle, not the destination.
?
"My CPA hasn't heard of this."
That's the most common response — and it's a good sign, not a bad one. This plan predates ERISA and every qualified plan your CPA works with daily. It's not taught in tax school. TIG provides full documentation and is happy to join a call with your CPA directly. Most CPAs become advocates once they review the structure. We'd rather have that conversation with them than against them.
?
"Is this a tax shelter? Is it aggressive?"
No — this was implemented into the U.S. Tax Code in 1953 and predates ERISA entirely. It's a non-qualified pension plan structured around a corporate-sponsored group life benefit. The deduction is for the cost of insurance — a legitimate, recognized business expense. It's not aggressive. It's simply not widely marketed because most advisors haven't been trained on it.
?
"What if the market goes down?"
The IUL has a 0% floor. If the S&P 500 drops 20%, your cash value doesn't drop with it — it earns 0% that year. You never lose money due to market performance. The upside has a cap (unless using Performance+ accounts), but the downside protection is absolute.
?
"How do I get my money out?"
Through the policy's loan provision — not a taxable event. Pacific Life lends you cash using your policy as collateral. The full cash value continues earning index credits. In Year 6+, the standard loan net cost is 0.00%. In the first five years, withdrawals are taxable — which is why this is a medium-to-long-term strategy.
?
"How is this different from a 401(k)?"
Several key ways. A 401(k) forces you to cover all eligible employees — CSGL is selective. A 401(k) is capped at $23,500/year in employee contributions — CSGL limits are based on compensation, up to $410,000. And most critically: 401(k) distributions are taxed as ordinary income. CSGL distributions are taken as policy loans — not taxable. Same general concept going in; completely different outcome coming out.
?
"What does the employee have to give up?"
Nothing — it's the opposite. As part of plan compliance, the corporation must provide other employees a minimum of $50,000 in term or permanent life insurance. The participating employee receives a personally-owned IUL with real cash value, a real death benefit, and real index-linked growth — all of which belong to them personally, regardless of what happens to the business.
CPA Deep Dive
For CPA conversations and advanced technical questions. Every point sourced from CSGL program documentation.
Core Tax Framework at a Glance
The mechanics that make CSGL work
1953 Tax Code
Predates ERISA (1974) and all current qualified plans. Not subject to ERISA nondiscrimination testing — selective enrollment of key employees is permitted.
Corporate Deduction
Corporation deducts the cost of insurance (COI) — approximately 50% of the IUL premium — as a business expense. The remaining premium flows into the employee's personally-owned policy cash value.
IRC §7702
The IUL must comply with §7702 life insurance contract rules. When properly structured, policy loan proceeds are not included in gross income — the basis for tax-free retirement income.
IRC §79
Group term life coverage above $50,000 creates imputed income based on IRS Table I rates — a known, manageable cost fully reflected in all illustrations.
Policy Loan Treatment
Loans are borrowed from Pacific Life — not the policy itself. Interest charged only on outstanding loan balance. In Year 6+, standard loan net cost is 0.00% (2.25% charged, 2.25% credited).
IRMAA Protection
Policy loan income does not count as MAGI for Medicare IRMAA surcharge. Unlike SEP IRA and Cash Balance, CSGL distributions do not increase Medicare Part B/D premiums.
CPA Q&A — The Hard Questions
How to walk a CPA through the structure confidently
Q
What exactly is the corporation deducting?
The corporation deducts the cost of insurance (COI) component of the IUL premium as an ordinary business expense — approximately 50% of the total premium. The COI is the actuarial cost of providing the death benefit. The remaining premium accumulates as cash value inside the employee's personally-owned policy. The corporation is not deducting the full premium — only the insurance cost portion.
Q
Is the employee taxed on anything at enrollment?
Yes — partially. Under IRC §79, employer-provided group term life coverage above $50,000 creates imputed income based on IRS Table I rates. For coverage amounts in CSGL, this is a known, manageable cost reflected in all illustrations. The estimated ~$205K of contribution representing the employee's basis flows in as taxable — this is what enables tax-free withdrawal of basis later.
Q
How does the tax-free distribution actually work mechanically?
The IUL must comply with IRC §7702. When a compliant policy is properly funded, the owner accesses cash value through the policy's loan provision without triggering taxable income. Policy loans are borrowed from Pacific Life collateralized by the policy. The loan proceeds are not included in gross income. After year 6, the standard loan net cost is 0.00%.
Q
What are the employee matching requirements?
As a condition of the CSGL group life benefit, the corporation must provide all other eligible employees a minimum of $50,000 in term or permanent life insurance. This is what allows the plan to qualify as a group life benefit. It is a relatively low cost compared to the benefit the key participant receives.
Q
Is this plan subject to ERISA?
No. CSGL is a non-qualified plan structured as an executive employee benefit. Implemented in the U.S. Tax Code in 1953 — before ERISA was enacted in 1974. Not subject to ERISA's nondiscrimination testing, vesting schedules, or funding requirements. Thi
s is precisely what allows it to be offered selectively to key executives and business owners.
Q
What happens if the policy lapses?
If a policy lapses while outstanding loans exceed the cash value, the outstanding loan balance could be treated as a taxable distribution. This is why proper policy management is critical. Pacific Life's Horizon IUL 2 includes no-lapse guarantees and the program administrator monitors loan levels relative to cash value as part of ongoing servicing.
Everything in One Place
Resource Center
Training videos, program documents, and email templates for the Corporate Sponsored Group Life strategy.
Training Videos
Upload & organize your training library
Program Overview
What CSGL is and how the corporate deduction works — start here
+ Upload Video
Pitch Walk-Through
How to open the conversation with a business owner or executive
+ Upload Video
CPA Conversation Guide
Walk a CPA through IRC §79, §7702, and the deduction mechanics
+ Upload Video
Objection Handling
Live role-play of the most common objections
+ Upload Video
Relevant Documents
Program materials, legal opinions & compliance docs
Subject: A retirement strategy most CPAs have never seen
Hi [First Name],
Most retirement strategies are variations of the same three options — 401(k), SEP IRA, or Cash Balance. If you've already maxed those out, your CPA has probably told you there's not much else to do.
I recently came across a corporate-sponsored structure that's been in the tax code since 1953. It generates roughly a 50% corporate deduction on contributions, grows linked to the S&P 500 with a 0% floor, and retirement income comes out completely tax-free via the policy loan provision.
Most CPAs have never encountered it — it predates ERISA and isn't covered in most tax coursework.
Would it be worth a 20-minute conversation to see if it fits your situation?
[Your Name]
2️⃣
CPA Introduction Email
Sent to the prospect's CPA
Expand ↓
Subject: CSGL retirement structure for [Client Name] — requesting your review
Hi [CPA Name],
I'm working with your client [Client Name] on a Corporate Sponsored Group Life (CSGL) plan and wanted to bring you in before any decisions are made.
CSGL is a non-qualified pension plan structured as a corporate-sponsored employee benefit. The corporation deducts the cost of insurance (~50% of premium) as a business expense. The employee personally owns an IUL — Pacific Life Horizon IUL 2 — that builds cash value linked to the S&P 500 with a 0% floor. Retirement income is accessed via policy loan and is not taxable income.
Key framework: Implemented into the U.S. Tax Code in 1953, predating ERISA. Relevant code sections: IRC §79, §7702.
Happy to walk through on a call.
[Your Name]
3️⃣
Follow-Up After Calculator Review
Sent after running the retirement estimator
Expand ↓
Subject: Your CSGL numbers from today — $[dist]/yr in tax-free retirement income
Hi [First Name],
Great speaking with you today. Here's what we modeled:
• Annual Funding: $[Amount]
• Funding Period: [X] Years
• Est. Annual Tax-Free Income: $[Distribution/yr]
• Total Distributions: $[Total]
• Age 100 Death Benefit: $[DB]
• Est. Annual Corp Deduction: $[Deduction]
Next step: loop in your CPA. I'll reach out with the CSGL Key Points and Corp Responsibilities documents.
[Your Name]
4️⃣
Year-End Urgency
Sent Q4 — policy must be issued before year-end
Expand ↓
Subject: CSGL enrollment window — policy must be issued before year-end
Hi [First Name],
To receive the corporate deduction in this tax year, the CSGL policy needs to be issued before December 31.
Based on what we modeled, your corporation would receive approximately $[Deduction] in tax deductions this year, with an estimated $[Distribution]/year in tax-free retirement income starting at age [X].
If your CPA has signed off, next step is the CSGL Census — a 10-minute form. I can send it today.
[Your Name]
Advisor Tool · For Internal Use
Retirement Planner
Enter client details to see recommended allocation across annuities, AUM, and cash — plus estimated retirement income.
Client Profile
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affects monthly benefit amount
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Recommended Allocation
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guaranteed / month
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household / month
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months of expenses
Income Gap Analysis — vs Your Target
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Healthcare Cost
Savings Rate Check
Enter age, assets, and income above to see allocation and retirement income estimates.
Allocation Philosophy
How TIG thinks about the three buckets — and why each one matters.
Annuities
The Floor
Guaranteed income you can't outlive. Annuities cover essential expenses so the rest of the portfolio can take growth risk without panic.
FIAs & SPIAs — contractual monthly income that never stops
Protection-first — builds confidence before any market conversation
Market-linked growth over time. AUM is where long-term wealth is built — compounding over decades and funding a sustainable withdrawal rate in retirement.
4% sustainable draw rate — standard planning benchmark
Risk-adjusted — allocation shifts toward income as client ages
The emergency brake and opportunity fund. Cash prevents clients from selling investments at the wrong time and provides peace of mind through volatility.
12–24 months of expenses as the target reserve in retirement
HYSAs, money markets, T-bills — earning while on standby
Typically 10–13% regardless of risk tolerance
Allocation by Risk Profile
Starting point — adjust for age, income needs, and legacy goals
Profile
Annuities
AUM
Cash
Best For
Conservative
45%
42%
13%
Near or in retirement, income-dependent, low volatility tolerance
Moderate
30%
58%
12%
10+ years to retirement, balanced growth and protection
Aggressive
15%
75%
10%
15+ years out, high income, comfortable with volatility
Retirement Income Estimates
What different portfolio sizes actually look like as monthly income — and how to frame that conversation.
Annuity payout assumes ~5%/yr on allocated amount. AUM draw assumes 4%/yr sustainable withdrawal. Illustrative only — actual results vary by product, age, rates, and market performance.
Add Social Security on Top
Claim at 62
−30% of full benefit
Avg ~$1,300/mo single
Full Retirement Age (67)
100% of earned benefit
Avg ~$1,900/mo single
Delay to 70
+24% above full benefit
Avg ~$2,350/mo single
Married Household (both)
Combined benefit
Avg $3,000–$4,800/mo
2024 averages. Use the Calculator tab to enter actual SSA estimates from the client's my Social Security account for precise projections.
How to Frame the Income Conversation
Scripts that work
Opening — The Income Gap
"Most people know what they've saved. Very few know what that translates to in actual monthly income. Today I want to show you exactly what your portfolio looks like as a paycheck — and make sure we're building toward the number that actually covers your life in retirement."
The Three Buckets
"The way I think about retirement income is three buckets. The first is your floor — money you can't outlive. The second is your engine — managed investments growing over time. The third is your buffer — cash that keeps you from ever selling at the wrong time. When all three are right-sized, you stop worrying about the market."
The Annuity Close
"Here's what I want you to notice — even before we touch your investments, a portion going into a guaranteed vehicle gives you a check every single month that never stops, no matter what the S&P does. That's the floor. Everything else just has to grow on top of it."
