Case Studies
Recent Case Examples
As is evident with some of our recent cases identified below, our tax savings strategies are equally applicable to all industries, any business structure, any size of company or any level of revenue and net income.
Case Study: Martin, IT Professional
Most financial experts agree the #1 eroding factor to income and wealth generation is taxation. Tax planning is a process of looking at various tax options in order to determine when, whether, and how to conduct business and personal transactions so that taxes are eliminated or considerably reduced. The decisions you and your tax advisors make now will either preserve or consume your income and wealth.
Executive Summary
Martin is an IT professional and is the owner of a highly profitable consulting firm that works for several high-profile companies and Department of Defense. Over the past ten years and two CPA’s, Martin has paid over $635,000 in taxes to the IRS, state, and local tax agencies. In 2018, he broke free from the tax matrix and got a tax refund for the first time in twelve years. What changed for Martin?
Challenges
Before working with Tax Plan Advisors, Martin was like most business owners. He worked hard at his business, built a client base, developed a team, worked with CPA’s, became a true entrepreneur, and paid 40% + in taxes every year. To Martin’s disappointment every tax season despite all the progress he was still hemorrhaging money. He knew that things had to change if he really wanted to retire someday. Even if he sold his company for millions, he would still have to overcome the taxes.
"Martin is a true success story. But the reality is, is that this kind of success is par for the course when you develop a cohesive and holistic tax plan. This plan becomes the blueprint for asset protection, wealth creation, and business succession. This is all possible because he has as team of professionals at his back and has learned the old adage of paying himself first, reinvesting in his business, thus avoiding the tax matrix”.
Gregory G. Bourque, MTAX, CASL
How our Service Helped
That is when he found us. It was a chance meeting and Martin seized the opportunity. After meeting with Martin, we were able to diagnose his tax exposure and tailor tax savings strategies to reduce and eliminate his tax bills. Reducing Martin’s tax exposure through proper planning was not the only thing that happened. During the process Martin learned how to protect his business and his family, accumulate wealth, secure his retirement, and position his business so when he decides to sell, he can significantly reduce the tax consequences of the sale of his business.
Results, Return on Investment and Future Plans
• Martin paid an average of $63,500 in taxes every year.
• With implementation of nine tax savings strategies, Martin was able to save $65,495 annually.
• These savings will continue every year unless there are significant tax law changes.
• Martin received a tax refund for the first time in twelve years in the amount of $1,513.
• The return on his investment with us has produced a growing and infinite ROI. Even our fee was tax deductible.
• Asset protection measures have been put in place to protect his business and his family.
• Wealth accumulation has begun, saving for his retirement without sacrificing quality of life.
• He has two children in college. His children work for his company (company takes a tax deduction) and the kids are paying their way through college.
• Martin plans to divert some of his retirement savings to grow a portfolio of destination real estate properties to supplement his retirement.
Collaborative Partners' Testimonial
"The Principals at Tax Plan Advisors were totally professional, highly knowledgeable, a pleasure to work with and helped me immensely with my client. Tax Plan Advisors included me in every meeting with my client as well as strategy development and implementation discussions.
Financial Planner
While I thought I was knowledgeable about taxes, Tax Plan Advisors presented several tax strategies that eliminated more than $170,000 of my client’s current year tax payments and for each year in the foreseeable future with estimated tax savings of approximately $1,703,000 over the next ten years. Additionally, Tax Plan Advisors helped my client obtain tax refunds of over $118,000 from amended returns for past years. My client was absolutely thrilled with the results of this engagement and Tax Plan Advisors positioned this in front of my client as me adding additional experts to my team; my client views me as a “hero” and have sent me several referrals (which they never did in the past).
CPA
The “found cash flow” obtained through the reduction of taxes utilizing the tax strategies recommended by Tax plan Advisors will be utilized by my client to invest in a new retirement account (added AUM fees for me) and in needed retirement income protection products (added annuity commissions). My client was unwilling to invest in themselves in past years even they agreed they should do so…now they are thrilled to move forward with my retirement planning recommendations. I am amazed by the work of Tax Plan Advisors and I am prioritizing my key clients to receive their tax planning assistance."
- Financial Planner