Client Results
Real tax savings delivered to business owners and real estate investors. Every result below is from an actual client engagement -- names removed for privacy.
Real Estate Investor with 12 LTR Properties
Long-term rental investor with 12 properties valued at $3.2M total. No cost segregation studies had ever been performed. Filing as passive investor without REPS qualification.
Investor was paying full tax on rental income with only straight-line depreciation. Had never explored Real Estate Professional Status despite qualifying hours.
- Conducted cost segregation studies on all 12 properties
- Qualified for REPS status through documented hours and filed Form 3115 for catch-up depreciation on all prior years
- Restructured entity holdings for liability protection
$412,000 in accelerated depreciation recovered in Year 1 through cost seg catch-up. Ongoing annual savings of $48,000+ through optimized depreciation schedules and REPS qualification.
S-Corp Owner Paying Full SE Tax
Independent consultant earning $250,000 annually on 1099 income. Operating as sole proprietor on Schedule C with no entity structure.
Paying 15.3% self-employment tax on entire net income. No retirement plan. No accountable plan for business expenses.
- Elected S-Corp status with reasonable compensation of $80,000
- Established Solo 401(k) with employer contributions
- Implemented accountable plan for home office, vehicle, and business expenses
$26,100 annual SE tax savings from S-Corp election. Additional $15,000+ in retirement tax deferrals and $4,800 in accountable plan deductions.
High-Income W-2 Couple
Dual-income couple with $850,000 AGI. Both W-2 employees at large corporations. Standard deduction filers with no active tax planning.
Above the phase-out for most deductions. Could not itemize because mortgage interest and SALT were below standard deduction threshold. No tax reduction strategies in place.
- Established Donor Advised Fund (DAF) with multi-year charitable bunching strategy
- Implemented backdoor Roth IRA conversions
- Created STR investment with material participation to generate nonpassive losses
$55,000 saved in first year through DAF bunching and STR loss offset. Ongoing $30,000+ annual savings through continued strategy implementation.
STR Owner with Passive Losses Trapped
Owner of 3 short-term rental properties on Airbnb. Significant depreciation and expenses creating paper losses, but losses suspended as passive under IRC Sec. 469.
$380,000 in accumulated passive losses trapped on Schedule E. Could not offset active W-2 income of $420,000. Prior CPA had not explored material participation rules for STRs.
- Documented material participation under the 7-day average rental period exception
- Reclassified all STR activity as nonpassive and conducted cost segregation studies on all 3 properties
- Filed amended returns to release suspended losses
$218,000 in previously trapped passive losses released and applied against active income. Cost seg studies generated additional $165,000 in accelerated depreciation.
Business Owner with No Retirement Plan
Business owner earning $600,000+ annually through S-Corp. No retirement plan beyond a basic traditional IRA contribution of $7,000/year.
Missing massive tax deferral opportunity. High current income with no tax-advantaged savings vehicle. Approaching age 50 with significant catch-up needed.
- Established Solo 401(k) with maximum employee + employer contributions
- Added Defined Benefit (Cash Balance) plan allowing $200,000+ in annual contributions
- Structured plans to maximize deductions while maintaining cash flow
$250,000/year in tax-deductible retirement contributions. $92,500 in annual federal tax savings at the 37% marginal rate. $1M+ sheltered over 5 years.
Medical Professional with Private Practice
Physician operating private practice as sole proprietor on Schedule C. Earning $780,000 annually. Paying maximum SE tax and maximum marginal rate with no entity optimization.
Full 15.3% SE tax on all earnings above the Social Security wage base. No entity structure. No retirement plan beyond basic IRA. No accountable plan.
- Restructured from Schedule C to S-Corp for primary practice income
- Created C-Corp subsidiary for ancillary services to access 21% flat rate
- Implemented defined benefit plan, Solo 401(k), accountable plan, and Augusta Rule deductions
$140,000 in annual federal tax savings. Effective tax rate reduced from 40% to 22%. $200,000+ annually diverted to tax-advantaged retirement accounts.
Prior CPA Left $346K in Personal Expenses on Business Books
Business owner with $2M annual revenue whose prior CPA had been deducting personal expenses -- vacations, personal vehicles, family meals, clothing -- as business expenses for 3+ years.
Books were a compliance disaster. Over $346,000 in personal expenses improperly classified as business deductions across 3 years of filed returns. Significant audit risk.
- Complete books cleanup separating personal from business expenses
- Identified legitimate deductions that had been missed (cost seg, retirement, accountable plan)
- Filed amended returns with corrected figures and implemented proper bookkeeping systems
$346,000 in improper deductions removed, eliminating audit risk. Replaced with $128,000 in legitimate, defensible deductions that had been overlooked. Net result: cleaner books and real savings.
Business Sale Exit Optimization
Owner selling business for $5.8M. Prior advisor had structured as straight asset sale with no tax planning. Owner had shareholder loans and accumulated earnings that had not been addressed.
Straight asset sale would trigger ordinary income on inventory and goodwill at highest marginal rates. No installment sale consideration. No QSBS analysis. Shareholder loans creating phantom income.
- Restructured as stock sale where possible and implemented installment sale for portion of proceeds
- Cleaned up shareholder loans before close and utilized charitable remainder trust
- Applied QSBS exclusion on qualifying shares
$1,040,000 in tax savings on the $5.8M sale. Reduced effective tax rate on the transaction from 30% to 12%. Post-sale retirement plan funded with $500,000 in Year 1.
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