Get Tax Strategies Like Microsoft

Microsoft reported $101 billion in profit and paid an effective tax rate of 2.44 percent. Most people hear that and assume the game is rigged for billionaires. Mike and Kevin ask the more useful question: how?

The answer is not offshore accounts or grey-area loopholes. Roughly $85 billion of that profit was offset by deductions and credits written into the tax code on purpose, and the same incentives are available to any business, and any taxpayer, willing to invest the same way.

What We Cover in This Episode

• The flat 21 percent rule. Corporations pay a flat 21 percent rate, yet Microsoft backed into 2.44 percent, which means about $85 billion of its $101 billion in profit was offset by deductions and credits available to any business that invests the way Microsoft does.

• 100 percent deductible property. Buy $100,000 of office equipment and you write it off a little at a time over several years. Put that same $100,000 into qualifying AI data center property, or a rental property using the same bonus depreciation rules, and it is largely deductible this year against income you are already earning.

• R&D credits are not deductions. They are a dollar-for-dollar reduction of the tax you actually owe, and every dollar of W-2 wages paid to build genuinely new technology counts the same way for a five-person business as it does for Microsoft.

• Preparer vs. strategist. Most taxpayers do not lose out because the code is stacked against them. They lose out because they have a tax preparer instead of a tax strategist. Proactive planning before the year closes is what lands Revo clients at 0 and 2 percent effective tax rates.

Chapters

[00:00] Why "the rich don't pay their fair share" misses the real story

[01:11] Microsoft reported $101B in profits and paid 2.44% in tax

[02:46] The math: backing into $85B in deductions

[03:19] These aren't loopholes, they're intentional tax incentives

[03:39] Inside the strategy: AI data centers and 100% deductible property

[05:12] R&D tax credits: a dollar-for-dollar reduction, not just a deduction

[06:54] You don't have to be a corporation to use this playbook

[10:01] Real clients getting to 0% tax, and how

[11:01] A retired client's capital gains deferral through a rural opportunity zone

[12:53] Tax preparer vs. tax strategist: the gap that costs people millions

[13:44] These opportunities exist for every taxpayer, not just billionaires

Disclaimer: This content is for educational purposes and does not constitute tax or legal advice. Always consult a qualified tax professional for your situation.