By Jimmy Lopez | Tax Strategist
Living in Westchester comes with a premium price tag. We have excellent schools and beautiful neighborhoods, but we also carry the heaviest tax burden in the nation. Between the federal taxes, New York State income tax, and the infamous Westchester property tax bills, you might feel like you are working almost exclusively for the government until June.
It is exhausting to watch your income rise, only to see your take-home pay stay the same because you jumped into a higher tax bracket. You suspect that there are strategies the "ultra-wealthy" use to protect their money, but your current accountant only talks to you once a year to tell you how much you owe.
That is not a strategy; that is just bad news.
I have spent 35 years on South Broadway helping Westchester families and business owners stop the bleeding. I know that you cannot simply "deduct" your way out of a Westchester tax bill using TurboTax. You need proactive planning that starts long before December 31st.
Here is how we help our clients keep more of their wealth using legal, advanced strategies.
1. Bypassing the SALT Cap (For Business Owners)
The 2017 law capping State and Local Tax (SALT) deductions at $10,000 was a direct hit to Westchester residents. However, New York State created a workaround called the PTET (Pass-Through Entity Tax). If you own an S-Corp, LLC, or Partnership, we can elect to pay the state tax at the company level rather than the personal level. This effectively bypasses the federal cap, turning a non-deductible personal expense into a fully deductible business expense. This single move can save you thousands.
2. The "Backdoor" Retirement Strategy
If you are a high earner in Westchester, you are likely phased out of contributing directly to a Roth IRA. But tax-free growth is exactly what you need. We help clients execute "Backdoor Roth" conversions properly. By navigating the pro-rata rules correctly, we can move money into tax-free vehicles so that when you retire, the IRS can’t touch that growth.
3. Real Estate & Capital Gains Harvesting
In Westchester, your home is likely your biggest asset, but it’s also a tax liability when you sell. Effective planning involves "Tax Loss Harvesting"—selling underperforming investments to offset the gains from a property sale or a profitable stock year. We coordinate with your financial advisor to ensure your investment moves lower your tax bill, rather than increasing it.
Stop Being a Passive Taxpayer
You work too hard to endure a 50% combined tax rate simply because you didn't have a plan. The tax code is a rulebook, and you need someone who knows how to play the game to your advantage.
Don't wait until tax season to look for solutions. By then, the window has closed. Come to Pupilo Tax at 206 S Broadway. Let’s review your portfolio and build a fortress around your income.