Orthopedic Practice Saves $108,000 with Entity and Retirement Strategy
My orthopedic practice generates $1.8 million in revenue, and for years I was handing over a massive chunk to taxes because my CPA had no strategy beyond filing accurate returns. A surgeon friend who worked with AE Tax Advisors told me I should at least get a second opinion on my tax situation. That second opinion turned into $108,000 in savings.
AE Tax restructured my practice entity for optimal tax efficiency, properly setting the salary-distribution split to minimize self-employment taxes while staying defensible with the IRS. They also introduced me to the Augusta Rule -- Section 280A -- which allows me to rent my personal home to my practice for business meetings up to fourteen days per year, tax-free. It is a perfectly legitimate strategy I had never heard of.
The biggest impact was the cash balance pension plan. As a high earner with stable income, I was the ideal candidate. The plan allows me to defer significantly more than a standard 401k, and the contributions are fully deductible. The team coordinated everything with the plan administrator and actuary.
Throughout the process, the communication was excellent. They explained every strategy in plain English, provided written memos for my records, and gave me a clear implementation timeline. Nothing felt rushed or confusing.
$108,000 saved in year one with strategies that will keep producing savings for years to come. If you are a physician or practice owner, AE Tax Advisors is the team you want in your corner.