The story: A urologist in Texas came to us knowing he could be paying far less in taxes as part-owner of his practice. His accountant was “very conservative” and “by the book,” and he was frustrated paying so much of his income each year.
Tax situation overview:
Annual income: $1,800,000
Lifestyle expense: $360,000
Cash flow recovery number: $1,440,000
Initial federal tax rate: 35%
Annual tax savings: $550,000
The outcome: By creating a family management LLC, structuring assets correctly, and reallocating cash flow into the entity and various alternative investments, the urologist was able to recover more than half a million dollars in tax dollars and put them toward his future instead.
As Bob said on his first tax plan call, “Now instead of ‘quarterly estimates,’ we can call that same money ‘kids’ college funds.’”