Reclaim What You’ve Already Paid
Most people see taxes as a sunk cost. Once it’s paid to the IRS, it's gone, right?
Not if you know how to use the tax code the way high-level strategists do.
What if you could take money you've already paid in taxes and redirect it into a real asset—something that creates long-term financial return and tax benefits?
That’s exactly what happens when you combine tax credits with tax depreciation. It's a strategy most overlook—but those who understand it can use taxes as fuel for wealth.
The Misunderstood Difference: Tax Credits vs. Depreciation
Let’s break this down:
- Tax credits are dollar-for-dollar reductions of your tax bill.
→ If you owe $1,000,000 and have a $1,000,000 credit, you owe nothing. - Depreciation is a dollar-for-dollar reduction of taxable income.
→ If you earn $1M and depreciate $500K, you’re only taxed on $500K.
Credits eliminate taxes already owed.
Depreciation shields income from future taxes.
Most people only use one. The real power? Comes when you use both.
Tax Credit Scenario: A $6.9M Solar Investment
Here’s how this works in real numbers:
- Paid Taxes: $3.4M in taxes paid or owed over previous three tax years
- Investment: $6.9M in solar infrastructure
- Solar Income: $174,189 total Income in five years
- Tax Credit (ITC): $3.4M — directly offsets federal taxes owed
- Depreciation Basis: $5.2M — the amount you can deduct over time
- Taxpayer Bracket: 20% = $1.04M in tax savings from depreciation
📌 Total tax benefit: $4.7M
That’s almost 35% return on investment in tax value. 100% of investment return. Total return being 135%
Worth noting: If the taxpayer is in a higher bracket (say, 37%), the depreciation benefit alone jumps to $2.03M, and the total tax benefit climbs above $5.8 million.
We’re Not Just Reducing Taxes—We’re Repurposing Them
To put it simply:
We’re taking tax payments and turning them into a turnkey, done-for-you investment to generate depreciation. Depreciation is a tax code benefit that deters future tax payments, which also means a benefit to keep future profits that would otherwise be paid to the Government.
The IRS already got its check. This strategy lets you go back, grab some of that money, and put it into an asset that:
- Pays you in tax refunds (via credits)
- Pays you in tax shields (via depreciation)
- And potentially pays you in cash flow, if the asset produces income (like solar)
Final Thought: Don’t Let the Government Use Your Money Better Than You Can
You already paid the taxes. Now you can turn that payment into power—both literally (in solar) and strategically (through the tax code).
This isn’t aggressive. It’s not a loophole. It’s just the part of the tax code that most people never get shown.
The IRS lets you play offense—if you know where to look.
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