Author: Ronica Brown | Estimated Reading Time: 1 minute
*Real names have been concealed in this client success story out of respect for the client’s anonymity.
Entrepreneurs who run family-owned businesses have a lot more at stake than those without these family ties.
You’re creating generational wealth for your children.
Your family depends heavily on the business to survive.
It’s a lot of pressure.
That pressure increases ten-fold when you’re faced with a high tax bill each year.
Mark’s auto repair business had been operating for over 20 years.
It’s a business that was passed down from one generation to the next.
But, Mark was facing a big challenge. The auto repair business’ tax bill was close to $1 million over a three-year period.
That was a heavy price to pay despite having a high profit margin.
His traditional CPA told him to buy expensive equipment so that he could pay less taxes.
That strategy wasn’t working though and his long-term plan was to sell the business and earn passive income from other investments.
His high tax bill was making that seem like a very distant possibility.
So, he began searching for a solution.
His Tax Savings Plan Reduced His Tax Bill By 55%
Mark came to us earnestly seeking a solution that would help him pay less taxes as a business owner.
He loves his traditional CPA but knew that the only way to reduce his tax bill was to hire an experienced tax advisor.
He needed:
Strategies that would help him keep more money in his pocket
Someone who could work with his existing finance team
Responses to his queries within a reasonable time frame
Results
There was a lot to sift through after my initial conversation with him. My team and I dived in, consulted with our partners, and prepared a strategy that gave him a:
3-year tax savings plan where he could take advantage of tax savings to increase his investment activities
$200K in additional tax deductions due to corrections we made to previously filed tax returns
Restructured S-Corporation that allowed income shifting strategies to lower tax brackets
A plan to utilize passive losses for real estate activities
List of tax investments for use over the next 3 years
He felt relieved that he now finally had a plan that would increase his tax savings and prevent him from unnecessarily spending money on new equipment.
A New Horizon
Mark is now looking forward to reaping the rewards of keeping more of his cash. He also takes comfort in the fact that his tax savings plan is revisited each year because he’s projecting a significant income increase in 2021.
Are you ready to experience significant tax savings for your business? Schedule a call with me to discuss how my team and I can help you.
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