The client was a single anesthesiologist with W-2 income of $450,000 who received 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.
Based on the client’s preferences, cash flow needs, and budget, we included the following as part of a larger overall plan:
A 2017 tax deduction of $226,000 reduced the anesthesiologist’s tax liability by $76,000, delivering a refund of over $89,000!