Independent contractors, electricians, HVAC companies, and artisan contractors often write hefty six-figure checks to the IRS, assuming their CPA has it covered, but they’re usually overpaying. The sad truth? You can’t get that money back from the IRS, and every year you use the same CPA, you’re leaving more money on the table. The question is, will you continue writing those checks, or will you take control of your tax strategy and keep that money for your business?
At RainwaterCPA, we specialize in helping contractors and small business owners optimize their tax plans to save money and boost profitability.
Don’t let tax issues hold your business back. Let us run your numbers and show you how proactive tax planning and expert resolution can save you money and keep your business on track.
PROJECTS COMPLETED
When it’s time to exit your skilled trade business, having a solid plan in place is crucial to maximize your profits and minimize your tax burden. RainwaterCPA creates tailored exit strategies that ensure you receive the full value of your hard work. Whether you’re selling, transitioning, or retiring, we help you structure the deal efficiently, so you can secure your financial future and leave a lasting legacy.
A client who owned a successful trade business wanted to transition out of the business and into a more passive income stream. He had started buying real estate as part of his plan to sell the business, but he wasn’t sure how to structure the transition in a way that minimized taxes. He was concerned about the tax implications of selling his business and how to effectively replace his business income.
We helped him strategically plan for the sale of his trade business while simultaneously building a real estate portfolio. Over the course of three years, we implemented tax-saving strategies, including using depreciation on real estate and leveraging 1031 exchanges to defer taxes. We also helped him optimize his cash flow from his real estate investments, ensuring that the income would replace the earnings from his business and provide long-term financial stability.
Thanks to our strategic planning, the client not only saved on taxes during the transition but also built a profitable real estate portfolio that generated a strong cash flow. In the end, the taxes he paid on his real estate investments were significantly lower than the taxes from his trade business. The cash flow from his real estate portfolio successfully replaced his business income, giving him financial freedom with a more tax-efficient structure.
A painting contractor with $5 million in annual revenue was struggling with a significant tax burden that was cutting into his profits. He had no clear tax strategy in place, and every year, he found himself writing large checks to the IRS, unsure of how to reduce his liability while remaining compliant.
We developed a customized tax strategy for the contractor, focusing on maximizing deductions, optimizing his business structure, and taking full advantage of available tax-saving opportunities. Key strategies included accelerating depreciation on equipment, optimizing payroll, and leveraging business expense deductions. By implementing this plan, we significantly reduced his taxable income and tax liability.
As a result, we helped the contractor save $186,734 in taxes in just one year. The success of the plan was so impactful that the client now uses this same strategy annually to continue saving money, ensuring that his tax burden is minimized year after year, allowing him to reinvest more in his business and achieve long-term growth.