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{TEST} Get Tax Strategies Like Microsoft

Microsoft turned $101 billion in profit into a 2.44 percent tax bill using incentives written into the code on purpose. Mike and Kevin show how the same depreciation and R&D credit playbook works for any business owner.

by

Mike Pine & Kevin Schneider

1 MIN READ

1 MIN READ

1 MIN READ

16 min

Microsoft reported $101 billion in profit for its 2025 tax year and paid 2.44 percent in tax. Most people assume that means the game is rigged for billionaires, and never ask what the tax code has already built in for anyone willing to invest the same way.

Mike and Kevin walk through the two strategies that did most of the work, why neither one is a loophole, and how the same playbook brings everyday business owners and high earners down to 0 and 2 percent effective tax rates.

What We Cover in This Episode

  • The flat 21 percent rule. Corporations pay a flat 21 percent rate, so Microsoft's 2.44 percent means roughly $85 billion of its $101 billion in profit was offset by deductions and credits written directly into the tax code, 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] Introduction: Microsoft's tax bill, and the tax code's best-kept secret

[01:11] The number that starts the fight: $101 billion in profit, 2.44% in tax

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

[03:19] Why these are incentives, not loopholes

[03:39] Real numbers: turning an AI data center into a 100% first-year deduction

[05:12] The R&D tax credit test: why this deduction is unlike any other

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

[10:01] De-risking your own taxes: real clients at 0% and 2%

[11:01] The strategy with a permanent 30% exclusion

[12:53] Preparer vs. strategist: the gap costing people millions

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

1024 Texan Trail Ste 100, Grapevine, TX 76051

DISCLAIMER:

This is not a CPA firm and these services are not regulated by the Texas State Board of Public Accountancy.

© 2026 REVO TAXPAYER ADVOCACY LLC. ALL RIGHTS RESERVED.

1024 Texan Trail Ste 100, Grapevine, TX 76051

DISCLAIMER:

This is not a CPA firm and these services are not regulated by the Texas State Board of Public Accountancy.

© 2026 REVO TAXPAYER ADVOCACY LLC. ALL RIGHTS RESERVED.

1024 Texan Trail Ste 100, Grapevine, TX 76051

DISCLAIMER:

This is not a CPA firm and these services are not regulated by the Texas State Board of Public Accountancy.

© 2026 REVO TAXPAYER ADVOCACY LLC. ALL RIGHTS RESERVED.

1024 Texan Trail Ste 100, Grapevine, TX 76051

DISCLAIMER:

This is not a CPA firm and these services are not regulated by the Texas State Board of Public Accountancy.

© 2026 REVO TAXPAYER ADVOCACY LLC. ALL RIGHTS RESERVED.