Life Management
Dedicated to keeping its members at the forefront in their industry
The Insulator • August 2026
8
A
mericans pay more 
in taxes each year 
than they spend 
on food, clothing, 
and housing combined, so 
reducing your taxes to the 
legal minimum can greatly 
increase your ability to build 
wealth. Judge Learned Hand 
said, “Anyone may so arrange 
his affairs that his taxes shall 
be as low as possible; he 
is not bound to choose that 
pattern which will best pay 
the treasury; there is not even 
a patriotic duty to increase 
one’s taxes.” Supreme Court 
Justice Sutherland declared, 
“The legal right of a taxpayer 
to decrease his taxes or to 
altogether avoid them by 
means which the law permits 
cannot be doubted.” Here are 
five strategies to reduce your 
taxes to the legal minimum. 
Strategy #1 - Create Non-
Taxable Income
The IRS allows you to rent out 
your home for up to fourteen 
days each year without having 
to declare the rent as income. 
When a business partner 
or client comes into town 
and stays at your home, you 
can charge your corporation 
rent for the room. You can 
also have a company party 
or trainings at your home 
and rent your home to your 
corporation for the day. The 
corporation deducts the rental 
expense, and you enjoy the 
rental income tax free.
Strategy #2 - Spread Income
If you are in a federal tax 
bracket higher than 15%, you 
may be able to reduce your 
taxes by setting up a Nevada 
C corporation and have up to 
$50,000 of your income flow to 
this corporation. Nevada has 
no state income tax and has 
5 TAX REDUCTION STRATEGIES
By Larry Oxenham, 
American Society for 
Asset Protection

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