Case Designs
Fortune 500 Corporate Executive
Background
A corporate executive with W-2 income of $4,000,000. The executive had zero deductions available due to various phase-outs and limitations, was paying over $1,500,000 each year to the government. Current debt payoff was a priority for the client, rather than long term savings and retirement strategies. Â
Fortunately, they called one of our Managing Directors at Redwood Tax Specialists! Â
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The Plan
Based on the client’s preferences, cash flow needs, and budget, we designed their custom tax plan with: Â
a $160,000 real estate investment opportunity, when properly administered, generates large annual deductions to offset wage income and is not limited by passive real estate investment rules Â
The Results
A tax deduction of $730,000 from the real estate investment reduced the executive’s tax liability by $262,000, delivering a refund of over $252,000!