Real Estate Case Study
Income before planning: $951,596
Result: most of that year’s income tax was offset through planning. Your numbers will be different, which is exactly why we model them first.
Strategy Used: Multiple, including real estate, Cost Seg, time of write offs
A dentist that owned two successful offices came to us with a huge estimated tax bill. The client owned the real estate upon which both offices were located. We were able to engage our partners and perform a Cost Seg study and bonus depreciate a portion of the buildings. Additionally, we were able to time the purchase of some of the client’s new equipment to have additional deductions for the 2021 and 2022 tax years.
Few Quick Tips to discuss with your Business Tax Consultant
- Should I purchase the real estate with my business, if so what are the tax benefits?
- Does Cost Seg benefit my specific situation?
- How can I time the purchase of equipment I need to best benefit me over the next two years vs just this year?
Businesses that involve Real Estate and or equipment have lots of opportunities for tax planning. Be sure to discuss with your business tax consultant all of the options available to you. Feel free to reach out to us if you have any questions or feel you may be overpaying in taxes.
Cases like this one are specific to the dentist in them, which is why we build dental tax planning around your numbers rather than a template.
