Background A pediatrician and spouse with W-2 income of $250,000 and rental properties generating an additional $25,000 of taxable income each year were paying $65,000 in taxes annually. The spouse had chronic medical expenses that cost $15,000 per year out of pocket, that were non-deductible due to their income. The client also spent several thousand each year on continuing education, travel, and licensure expenses that were not deductible.
The client wanted a 5-7 year retirement plan, has a conservative investment outlook, and wanted comfort that their assets would cover both retirement needs and medical care.
​Fortunately, they called one of our Managing Directors at Redwood Tax Specialists!
The Plan Based on the client’s preferences, cash flow needs, and budget, we designed their custom tax plan with:
The Results An overall 80% tax reduction with combined Federal & State taxes reduced from approximately $65,000 per year to: ​
2016 – $32,672 2017 – $12,712 2018 – $12,883
The pediatrician realized increased retirement savings of $176,000 during 2016 and 2017 of which $91,000 was funded with tax savings, and long-term net worth increases of over $1Million – all directly attributed to the tax plan.
"We reduce taxes by 50% almost 100% of the time."
David Swanson, Managing Director
Redwood Tax Specialists
Tampa, FL and Surrounding Areas
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