Comment by yieldcrv

Private foundation, and no the money is not yours anymore, just under your control, you have to actually plan on doing something charitable for this to be of interest. But importantly, foundations and charities can invest in nearly anything. And yes you can get a salary from them, which is taxed normally.

Yes, everything here is just deferring. What you’re really doing is staggering the tax events across different years.

Like, it’s not important that something increases a tax footprint in year 5 if you have already planned on reducing tax footprints another way that year. More Net Operating Losses, more thing to carry forwards, more and bigger real estate depreciation, offsetting the increase in income.

Or eventually just paying taxes. Its not controversial to do.

Another aspect is the time value of money. With strategies like this you can go to your employer and file an exemption from employer withholding. So you get your full salary now instead of hoping for a tax refund next year , and that lets you employ these strategies at all and invest and live your life. Take a chance on having more capital gains, so you start getting taxed at the lower Long term capitals rate and phase out your W-2 work when this exceeds your income.