Background: Download Tax Summary
A single anesthesiologist with W-2 income of $450,000 and receiving a K-1 from minority ownership in two medical related entities with an additional $100,000 of income being passed through. The doctor had zero deductions available due to various phase-outs, and limited options to make corporate level changes to plan for taxes, and was paying over $150,000 each year to the government. Current debt payoff was a priority for the client, rather than long term savings and retirement strategies.
Fortunately, they called one of our partners at Cash Balance Advisor!
Based on the client’s preferences, cash flow needs, and budget, we designed their custom tax plan with:
- a $40,000 real estate investment opportunity, when properly administered, generates large annual deductions to offset wage income and is not limited by passive real estate investment rules
A 2017 tax deduction of $226,000 from the real estate investment reduced the anesthesiologist’s tax liability by $76,000, delivering a refund of over $89,000!