Case Design



The client was a single anesthesiologist with W-2 income of $450,000 who received a K-1 from minority ownership in two medical related entities with an additional $100,000 of income being passed through. The doctor had zero deductions available due to various phase-outs, and limited options to make corporate level changes to plan for taxes, and was paying over $150,000 each year to the government. Current debt payoff was a priority for the client, rather than long term savings and retirement strategies.

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 to include the following as part of a larger overall plan:

  • A $40,000 real estate investment that, when properly administered, generates large annual deductions to offset wage income and is not limited by passive real estate investment rules.

The Results

A 2017 tax deduction of $226,000 reduced the anesthesiologist’s tax liability by $76,000, delivering a refund of over $89,000!