How Our Clients
Slashed Their Tax Bills
in One Year

Paying Full Tax on Every Dollar of Rental Income

Tanya owned six rental properties generating $148,000 in annual rental income. Despite spending 900+ hours per year managing her portfolio, she was filing as a passive investor — meaning every dollar was taxed at her top ordinary rate, and $67,000 in paper losses were stuck in a passive loss carryforward she couldn't touch.

REPS Status She Qualified For But Never Claimed

Tanya's W-2 job was part-time — roughly 800 hours annually. Her real estate activities easily exceeded that. She qualified for Real Estate Professional Status (REPS), reclassifying all her rental losses from passive to active and allowing them to offset her W-2 income with no cap. Her prior CPA had never mentioned it.

REPS + Cost Segregation + Solo 401(k)

Year-One Tax Impact

Paying 15.3% Self-Employment Tax on Net Profit

David ran a thriving construction LLC reporting $310,000 in net profit. Taxed as a sole proprietor, every dollar was subject to self-employment tax. He was paying approximately $47,000 in SE tax alone — before a dollar of income tax was calculated. He’d been doing this for seven years.

An S-Corp Election That Would Split the Tax

By electing S-Corp status, David could pay himself a reasonable $120,000 salary and take the remaining $190,000 as a distribution. SE tax only applies to the salary portion. That one structural change would eliminate SE tax on $190,000 of income — saving over $29,000 per year on that basis alone.

S-Corp + Solo 401(k) + Augusta Rule + QBI

Year-One Tax Impact

High Income, Maxed 401(k), Assumed No Options Left

Robert earned $380,000 annually and maxed his 401(k). Beyond that he had no proactive strategy. With no business entity, he assumed he was out of options. He also generated $38,000 in side consulting income annually that he reported on Schedule C — but had never formed an entity around it, leaving multiple strategies completely unused.

A Consulting Entity He Already Had the Income For

Robert’s $38,000 in 1099 consulting income was enough to open a Solo 401(k), elect S-Corp status, apply the Augusta Rule, and claim a QBI deduction — none of which he was doing. Additionally, his RSU vesting strategy had no tax timing optimization, costing him thousands in avoidable ordinary income at peak rates each year.

Consulting LLC + Solo 401(k) + RSU Timing + Augusta

Year-One Tax Impact