Every year, doctors, practice owners, and medical entrepreneurs lose millions in potential savings because they assume their CPA has it all under control. We’ve seen it firsthand when a nursing home owner was hit with an $800,000 tax bill because her business was never structured properly. Or a pharmacy owner who sold a million dollars in shares, only to face a massive capital gains tax that wiped out hundreds of thousands of dollars. Without the right tax strategy, you could be jeopardizing everything you’ve worked for.
While other CPAs just file your taxes, RainwaterCPA helps you reduce them as much as legally possible.
Tax issues can quickly spread and drain your profits. Let us run your numbers for free to identify savings and ensure your tax strategy is optimized.
PROJECTS COMPLETED
When it’s time to transition out of your medical practice, a well-crafted exit plan is essential to protect the value of your business and ensure a smooth transition. RainwaterCPA specializes in helping medical professionals structure their exit strategy, whether that’s through selling, merging, or passing on the practice. We focus on maximizing your financial return, minimizing tax liabilities, and ensuring that your legacy remains intact for you and your patients.
A husband and wife duo of doctors, with a combined income approaching $2 million annually, were facing a massive tax burden. They were in the highest tax bracket of 37%, and despite their success, they were paying an overwhelming amount in taxes. They needed a comprehensive tax strategy that would drastically reduce their tax liabilities while ensuring their financial goals were still being met.
We worked with them to create a personalized tax plan incorporating seven distinct strategies. These strategies included basic tax-saving methods and more complex approaches such as a defined benefit plan, accelerating depreciation on assets, utilizing a charitable trust strategy, investing in oil and gas, and exploring third-party equipment financing. By strategically combining these tactics, we were able to reduce their taxable income and take advantage of opportunities they hadn’t fully leveraged before.
As a result of these strategic moves, we saved them a total of $616,000 in taxes, effectively reducing their tax bracket from 37% to 22%. This significant reduction in their tax bill allowed them to keep more of their earnings and gave them greater flexibility to reinvest in their personal and professional growth.
A client who owns multiple businesses across several locations was frustrated with their previous CPA firm, as they weren’t receiving any real tax planning or strategy. Despite managing several successful businesses, they were facing significant tax liabilities each year, and their previous firm wasn’t providing the guidance they needed to optimize their tax situation.
We worked with them to develop a tax strategy that would not only reduce their tax burden but also enhance their overall financial strategy. After evaluating their businesses and goals, we devised a plan to purchase and lease an airplane. By utilizing tax advantages related to business aviation, we were able to significantly reduce their tax exposure.
Thanks to our proactive tax strategy, we helped them achieve $325,600 in tax savings in the first year alone. With this savings, they were able to reinvest in their businesses and continue expanding their operations while keeping more of their hard-earned revenue.