Slash Taxes Fast: Real Estate Hacks!

August 05, 2025•3 min read

R. Kenner French opens the discussion by addressing real estate investors directly, promising three actionable tax hacks that are legal, moral, and ethical. He represents VastSolutionsGroup.com, a company originally founded in 1969, which has recently merged with Asset Defense Team to form VastAssetDefense.com. Kenner emphasizes the company’s long-standing commitment to helping clients save money and protect their assets through innovative tax and financial strategies, particularly aimed at high-net-worth real estate investors and business owners.

The first tax hack is the use of defined benefit plans, especially beneficial for business owners without employees. Kenner shares a real-life example of a California attorney saving $80,000 in taxes annually by contributing to a defined benefit plan and using those funds to purchase life insurance and commercial real estate. He stresses that defined benefit plans can be used to invest in real estate directly, making them highly valuable for long-term, tax-advantaged wealth building.

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The second hack involves taking advantage of R&D tax credits, especially for those investing in or utilizing artificial intelligence. Unlike deductions, which reduce taxable income, tax credits reduce tax liability dollar-for-dollar. Kenner points out that many business owners, including real estate professionals dabbling in AI, overlook this opportunity. He recommends dedicating time to AI development and applying for credits, which could yield significant returns with relatively low effort and risk.

The third strategy is forming a captive insurance company under Section 831(b) of the tax code. This allows business owners to deduct insurance payments while retaining control of the money through their own captive entity. Kenner explains that while this strategy involves compliance and planning, it effectively converts an expense into an asset by allowing business owners to manage and benefit from their insurance premiums rather than losing them to third-party insurers.

In closing, Kenner reiterates the value of these three strategies and encourages listeners to consult with professionals or contact VastSolutionsGroup.com for more information. His goal is to empower real estate investors with financial tools that can reduce taxes and build wealth more effectively, all while staying fully compliant with IRS regulations.

Takeaways

• Three tax hacks for real estate investors can save money.

• Defined benefit plans can significantly lower tax returns.

• R&D tax credits provide dollar-for-dollar tax savings.

• It's essential to consult with tax advisors for benefits.

• Captive insurance can help manage risk and provide tax deductions.

• Investing in real estate through defined benefit plans is possible.

• R&D tax credits are often overlooked by many businesses.

• Setting up a captive insurance company can be beneficial.

• Asking about R&D credits is free and can lead to savings.

Sound Bites

• Three tax hacks for real estate investors.