I'm a US citizen with a US-based single-member LLC operating in the internet space that will have $100K of profit / taxable income this year. I'm looking for ways to creatively (and legally) spend/invest all or a portion of the $100K profit in order to reduce taxable income as much as possible.
The way I see it is that if I do nothing, I'm going to owe $40K in taxes this year, leaving me with only $60K cash. Alternatively, if I can find a way to spend/invest the $100K profit in a tax deductible manner, then I'd owe no taxes and have a $100K asset(s). If this line of thinking is flawed, please let me know!
Some things I'm considering:
Acquire other internet businesses and structure the transactions to take advantange of large step ups and accelerated depreciation
Retirement accounts (solo 401k, SEP IRA, etc.) - I'm leaning away from these as it's possible I'll need the cash over the next few years and would hence be hit with a 10% early withdrawal penalty (not to mention having to pay tax upon withdrawal)
Aside from the 2 things I'm considering above, what else should I consider?