Taxes are a compulsory part of life. To legally reduce one’s tax burden especially where large sums are involved, it is essential to seek the services of a tax accountant. This paper examines the case of an individual who has inherited $300,000 from their father and received $75,000 as compensation in a sexual discrimination case. It discusses the best strategies that can be used to reduce the taxes on these funds. It also examines how to tax the money earned from their investment.