Business giving out cash need to avoid taxation😜

[Shashi P.]

So “someone” has a business that is throwing out nearly 1.5 million dollars profit per year after reinvestment into business. 
 Now taxation is horrid in this income. 

So I can obviously lease the office building back to my company for a non-audit triggering amount. 

Now This person doesn’t need a single dollar of this income because his wife is a cardiologist and makes more than enough. 

Please tell me how EXACTLY someone can buy and accumulate real estate non-stop and pay no taxes due to deductions. Or low tax. Because real estate purchase are an investment and not a business investment.

Please help!!!!

[Michael Plaks]

@Shashi P.

You're not going to get an exact recipe here, because there're too many parts in this game. 

Just couple pointers.

You can own rental real estate that creates cash flow but does not cause any taxes, usually thanks to the magic of depreciation. 

But what you have in mind is different, I suspect. You probably want to find out how owning real estate can erase taxes on your $1.5M/yr non-RE business plus your wife's salary. That's not going to happen. You can reduce your overall taxes with real estate, but to eliminate it completely is unrealistic.

And if you have a $1.5M business, you need a tax strategist on your team, someone who knows not only how to prepare tax returns but how to minimize taxes by planning ahead.