Estimated reading time: 5 minutes

(No, it’s not just buying private jets). Many of my clients ask what the wealthiest Americans are doing to save money on taxes, and I get it! Costs are rising, margins are tightening, health insurance is a shitshow, and business owners are feeling squeezed from every direction. I don’t blame anyone for actively searching for more ways to keep the money they worked so hard to earn. And while everyday entrepreneurs are trying to figure out if a laptop qualifies as a deduction, I sat through a tax CPE where the very first example was…

How to write off a personal jet.

I wish I were kidding.

As a CPA for nearly 20 years, I’m going to give you insight as to why the wealthiest pay less in taxes. This post breaks down what this experience says about the tax system, why business owners feel excluded from tax strategy, the psychological barriers that keep people from saving money, and what the wealthy understand that most entrepreneurs don’t (hint: year-round strategic support).

TL;DR:

• Professional CPE boasting “Learn what the 1% do to save on taxes” include out of touch guidance that misses the mark, like “buy a PJ” (Private Jet)
• The jet isn’t the real strategy: the timing and year-round planning behind it are.
• Wealthy people save money on taxes because they get advice before decisions, not after.
• Most business owners overpay because they operate reactively instead of strategically.
• Flashy tax strategies are not the answer. Year-round planning and support are.

The Problem Isn’t the Jet — It’s What the Example Reinforces

The private jet example wasn’t surprising from a technical standpoint.

What was surprising was how normalized it was.

Slide 1, bullet point 1:
“Substantial bonus depreciation opportunities for personal aircraft.”

And instantly, I felt the psychological split that so many business owners that I work with every day experience:

• “This isn’t for people like me.”
  
• “Strategy must be for the wealthy.”
  
• “I’m too small for this level of planning.”
  
• “This feels out of reach, so why bother?”
  

This messaging is what keeps everyday business owners feeling stuck when it comes to taxes. It’s so discouraging! It’s why I see hard-working people stuck in a tax-filing rather than a tax-planning mindset. 

When the first example is a jet, the implication is clear:

Advanced strategy is for “them,” not “you.”

But that couldn’t be further from the truth.

What Wealthy People Actually Do To Save On Taxes 

Very few people reading this need to know how to structure ownership for a Gulfstream.

But everyone reading this does need to understand the real lesson hidden inside that example:

The wealthy plan all year long.

Every major tax outcome happens because of decisions made months before:

• Entity selection
  
• Compensation strategy
  
• Timing of purchases
  
• How income is recognized
  
• How expenses are categorized
  
• When distributions are taken
  
• What investments are made and when
  
• Whether you hire, fire, or restructure
  

Wealthy people don’t save money because they can write off jets. They save money because they have someone in their ear before they make decisions.

That’s the part no one puts on the slide, likely because having that trusted tax advisor is just something that is assumed knowledge for that group of people. 

The Psychology of Tax Planning That Keeps You Stuck

Most entrepreneurs think they need to “earn” a tax strategy. They believe strategy is something you get once you’ve reached seven figures, or once you’re “big enough,” or once you’ve reached some magic revenue number. 

(Spoiler: this is a moving goal post. I hear the exact same issues from business owners generating multiple seven figures in revenue that I do with business owners generating $250,000 or less) 

Meanwhile, wealthy people assume strategy is the default. They wouldn’t dream of making financial decisions without guidance.

And that assumption creates the entire gap.

It’s not the strategy that’s unavailable. It’s the mindset that you’re not entitled to it yet.

That belief alone costs business owners thousands every year.

If this feels true for you, learn about our personalized options.

Why “April Thinking” Will Always Cost You Money

If you only think about taxes at filing time, you’re already too late.

Every meaningful tax-saving opportunity happens during the year:

• When you bring on a contractor
  
• When you hire your first employee
  
• When you add an assistant
  
• When you buy equipment
  
• When you shift your business model
  
• When you raise or lower your prices
  
• When you take owner draws
  
• When you create a new offer
  
• When your revenue unexpectedly spikes
  
• When you have a slow season
  
• When tax laws change mid-year (which they do… often)
  

If no one is advising you at these points, you’re making uninformed decisions that determine next year’s tax bill.

And by April? Those decisions are locked in.

You can’t retroactively optimize your year.

What Business Owners Need Instead

You don’t need the tax planning used for aircraft ownership.

You need a strategic partner who can help you:

• Identify opportunities before they disappear
  
• Understand the tax impact of decisions in real time
  
• Time purchases and investments to your advantage
  
• Ensure you’re structured properly
  
• Run payroll and comp strategies that don’t drain you
  
• Navigate quarterly payments with clarity
  
• Document deductions so you feel confident
  
• Adjust your strategy when the law or your business changes
  

And not communicating that effectively is a disservice that my entire industry is doing to everyday Americans. We just assume this is common knowledge, just because it’s something we are so used to. It’s our duty to inform business owners of this mindset shift. 

The wealthy don’t get their results because the rules are different. They get their results because they get support all year long.

You Don’t Need a PJ. You Do Need a Tax Plan.

The private jet in this case is the clickbait that is designed to keep you stuck. It’s the flashy thing that you just can let slide out of your head. It’s the thing you think about and aspire to that you may not believe is attainable. It becomes the point, but it’s so not the point. 

The point is that wealthy people are in ongoing dialogue with professionals who help them maximize opportunities.

Not at tax time.
Not “when they get around to it.”
Not once things blow up.
All. Year. Long.

The only difference between someone who buys a jet and someone who’s trying to figure out if a laptop is deductible is access. You don’t need millions in revenue to have that. You just need the willingness to stop operating alone.

Because the truth is simple: Tax strategy isn’t a luxury for the wealthy. It’s a necessity for the entrepreneur who’s tired of overpaying.

And the sooner you have someone advising you throughout the year, the sooner you start seeing the benefits the tax code already offers you — even if you never step foot on a jet.

Explore services at Abundantia Advisory and learn how to save money on taxes.