Tax strategies are methods individuals and businesses use to minimize their tax liabilities while remaining compliant with the law. These strategies can include deductions, credits, and exemptions that reduce taxable income. For example, contributing to retirement accounts like a 401(k) can lower taxable income, while certain expenses related to business operations may be deductible. Another common tax strategy is tax-loss harvesting, where investors sell losing investments to offset gains from profitable ones, thereby reducing overall tax liability. Additionally, understanding the tax implications of different investment vehicles, such as stocks, bonds, and real estate, can help individuals make informed decisions that align with their financial goals.