Financial expert Preston Seo shares how he once owed over $30,000 in taxes but learned to work within the U.S. tax code to keep more of his income. He now uses nine IRS-approved strategies to pay less in taxes and maximize his savings. Seo also emphasizes the benefits of a health savings account (HSA) for tax deductions and tax-free growth on medical expenses.

Seo contributes the maximum amount to his HSA annually and pays his medical bills out-of-pocket to let his HSA compound untouched. He views it as a hidden retirement account with tax-free reimbursements in the future. Additionally, Seo utilizes a backdoor Roth IRA and a Solo 401(k) to grow his savings tax-free while reducing tax on side income.

By filing for S Corp status and deducting housing costs for a home office, Seo saved nearly $20,000 in taxes the first year alone. He also legally hires his son to work for him, shifting income into a 0% tax bracket and teaching financial responsibility. Seo takes advantage of the Augusta Rule to rent out his home tax-free for up to 14 days per year. Renting your home to your business can provide tax benefits, according to Seo. Real estate deductions can offset active income, saving thousands in taxes. A 1031 exchange allows reinvestment of profits into new properties without immediate capital gains taxes. Seo used this strategy to preserve hundreds of thousands of dollars.

Read more at Yahoo Finance: 9 Secret Strategies the Wealthy Use To Cut Their Tax Bills, According to Preston Seo