As the saying goes, only two things in life are certain: death and taxes. Which of the two is most objectionable is open to debate. Few of us dispute the necessity of income taxes as a means to pay for services that local, state and federal governments provide. The argument is, which services and at what price. Assuming you’re in the top federal bracket, you’ve likely been working about five months each year to pay your income tax. If you live in a state with a high state income tax, you can add another month and a half. This chapter is not intended to be an all-encompassing discussion of federal and state income taxation, an undertaking requiring volumes many times the size of this book. Rather the goal is to provide an overview of practical income tax planning opportunities for wealthy individuals.