Dr. Raj
Plastic Surgeon · Austin, TX · Age 52
Married Filing JointlyIncome: $945KMedical
“Nobody told me my medical office was a six-figure tax asset.”
The Situation
W-2 income from hospital + private practice S-corp
Owns medical office building ($1.2M)
Max 401(k) + backdoor Roth already done
Strategies Identified
1. Cash Balance Plan + Defined Benefit
IRC §401(a)(2), §415(b)
$52,800
Add a cash balance plan on top of the 401(k). At age 52 with high income, shelter up to $165K/year.
2. Cost Segregation on Medical Office
IRC §168(k)
$23,100
Reclassify $385K of the $1.2M office into 5/7/15-year property. Front-load depreciation.
3. Donor Advised Fund (Appreciated Stock)
IRC §170(e)
$11,280
Donate $35K in appreciated stock to a DAF. Skip capital gains + deduct full FMV.
4. S-Corp Wage Optimization
IRC §1402
$7,200
Right-size reasonable salary to reduce self-employment tax on practice income.
Tax Impact
Before
$312,000
→
After
$217,620
Annual Savings
$94,380
30% reduction
Action Steps
1
Open a cash balance plan before Dec 31
2
Order cost seg study on medical office
3
Transfer appreciated stock to Fidelity Charitable DAF
4
Review S-corp reasonable comp with CPA
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