Background:

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!

The Plan:

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

The Results:

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!