Our client, “Louis”, is a physical therapist who owns multiple physical therapy locations. He had been working with the same CPA for years. In his own words, the CPA was “a great tax preparer, but very conservative” when it came to tax reduction.
Louis wanted to learn about the risks and benefits associated with, e.g., taking a home office deduction (he was legitimately working from home most of the week), or hiring his teenage daughter to help him with website updates and some admin tasks.
He was also worried about being able to fund his daughter’s tuition at her dream college, and planning to invest in a rental property.
Louis’s conservative accountant had advised against implementing various legal and advantageous strategies BUT had been letting Louis deduct various disallowed personal expenses and entertainment expenses. This meant that during an audit, Louis would be in trouble – but definitely not for his legitimate home office!
We walked Louis through the deductions he was eligible for (and deductions he was not eligible for!). We helped him find an additional retirement vehicle best suited for his needs. We helped him put his daughter on payroll and establish a fair salary for her.
We also advised Louis and his partner on lowering their personal taxes – with advanced strategies they had not previously heard about.
Louis’s savings in 2021 will approach $55,000. Over 5 years – the savings would reach approx. $275,000. That is the equivalent of good college education, a down payment for a rental property, or a sizeable retirement contribution.
We achieved this by using legal and ethical tax reduction strategies tailored specifically to Louis’s financial situation – with the added bonus of working with him remotely and around his hectic schedule.