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118 \\ Hidden Tax Savings: How One Client Saved $12,500 with a Business Structure Fix

Author
Tiffany Phillips - CPA, Small Business Money Mentor, Financial Expert
Published
Thu 04 Jul 2024
Episode Link
https://smallbusinessfinance.podbean.com/e/118-hidden-tax-savings-how-i-saved-a-client-12500-with-a-simple-fix/

In this episode, I share a real-life tax planning case study where a simple structural fix saved a client $12,500 in self-employment taxes. When a doctor came to me frustrated with slow and reactive CPA support, we reviewed his tax setup and discovered a major mistake: his defunct partnership was still being filed as a partnership even though he was the sole owner. That error was costing him unnecessary self-employment taxes and extra admin costs. By correcting the structure and consolidating into an S corporation, he not only cut taxes but also reduced bookkeeping fees, eliminated duplicate filings, and simplified his business finances. If you’ve ever wondered whether old returns are costing you money, this episode shows why a proactive review matters for tax planning and savings strategies.


 


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