Tax Planning That Saves More Than It Costs
Proactive strategy saves our clients $30K-$80K+ in year one. Stop leaving money on the table.
(217) 788-0750
•1,500+ Clients Nationwide•Real Estate | Physicians | High-IncomeWhat Tax Planning Actually Includes
If your CPA only talks to you in April, you're almost certainly overpaying. Most high-income earners don't realize how much they're leaving on the table until a proactive strategy is in place.
Tax planning is the process of analyzing your financial situation and making strategic decisions before year-end to legally minimize your tax liability. It is not the same as tax preparation. Preparation records what happened. Planning determines what should happen.
At Taxstra, our tax planning service includes a comprehensive review of your income sources, entity structure, retirement accounts, investment portfolio, real estate holdings, and charitable giving. We identify every available strategy under the current tax code — not just the obvious ones your payroll provider or TurboTax would catch, but the advanced strategies that require professional analysis and multi-year modeling.
Specific areas we analyze in every engagement:
- Entity optimization — Should your business be a sole proprietorship, LLC, S-Corp, or C-Corp? The wrong structure costs thousands annually in unnecessary self-employment tax.
- Retirement plan design — Beyond your employer 401(k), strategies like Solo 401(k), SEP-IRA, cash balance plans, and defined benefit plans can shelter $50,000 to $300,000+ per year in pre-tax income.
- Income timing and deferral — Accelerating deductions into the current year while deferring income into lower-rate years. This is especially powerful around retirement or career transitions.
- Real estate depreciation strategies — Cost segregation, bonus depreciation, REPS qualification, and the STR loophole can generate six-figure deductions for property owners.
- Charitable giving optimization — Donor-advised funds, qualified charitable distributions, and appreciated stock donations can double your tax benefit compared to cash gifts.
- State tax planning — For multi-state filers, remote workers, and business owners operating across state lines.
Every strategy we recommend is documented in a written tax plan with projected savings, implementation deadlines, and specific action items. You know exactly what we are doing, why, and how much it will save.
How Tax Planning Differs from Tax Preparation
Most Americans — including most high-income earners — only have a relationship with a tax preparer. They send documents in February, get a return filed in April, and do not hear from their CPA again until the following year. That is tax preparation.
| Tax Preparation | Tax Planning |
|---|---|
| Backward-looking (reports what happened) | Forward-looking (determines what should happen) |
| Once per year (January-April) | Year-round with quarterly reviews |
| Compliance-focused (file correctly) | Strategy-focused (minimize legally) |
| Costs $500-$5,000 | Saves $15,000-$200,000+ |
| Reactive (after the fact) | Proactive (before deadlines pass) |
The difference is not subtle. A tax preparer will enter your 1099 income on Schedule C and calculate self-employment tax. A tax planner will have already helped you elect S-Corp status, set reasonable compensation, and run payroll — so that 1099 income flows through the S-Corp and saves $10,000 to $30,000 in self-employment tax before the return is ever prepared.
A tax preparer will depreciate your rental property straight-line over 27.5 years. A tax planner will have ordered a cost segregation study months earlier, reclassifying $200,000+ into 5-year property with bonus depreciation. Same property, same taxpayer — dramatically different tax outcome.
Who Needs Proactive Tax Planning?
Not everyone needs a dedicated tax planner. If your only income source is a single W-2 under $150,000, standard deductions and employer retirement plans handle most of the optimization. But for high-income earners with complex situations, the gap between reactive filing and proactive planning is measured in tens of thousands of dollars.
Our tax planning clients typically share these characteristics:
High-Income W-2 Earners
Physicians, attorneys, executives, and tech professionals earning $300K+ who are in the 32%-37% federal bracket. Strategies include backdoor Roth, mega backdoor Roth, deferred compensation planning, and RSU/stock option timing.
Business Owners
Self-employed professionals, agency owners, consultants, and e-commerce operators earning $150K+ net. Strategies include S-Corp optimization, retirement plan stacking, accountable plans, and the Section 199A QBI deduction.
Real Estate Investors
Landlords with 2+ properties, STR operators, and commercial property owners. Strategies include cost segregation, REPS qualification, the STR loophole, 1031 exchanges, and entity layering. Read our real estate CPA services.
Physicians & Medical Professionals
Attending physicians, surgeons, and specialists with W-2 income plus 1099 side income from consulting, expert witness, or medical directorships. Read our physician tax planning services.
If you are paying more than $50,000 per year in federal income tax and your CPA only contacts you during filing season, you are almost certainly overpaying. The question is not whether proactive planning will save you money. The question is how much.
Tax Planning Pricing: What to Expect
We believe in transparent pricing. You should know what an engagement costs before you commit. Here is how our tax planning fees are structured:
Individual Tax Planning
High-income W-2 earner, single or married filing jointly
Business Owner Tax Planning
S-Corp or partnership, includes entity optimization
Complex Multi-Entity Planning
Multiple businesses, real estate portfolio, trust planning
These fees include the written tax plan, quarterly planning calls, multi-year projections, implementation support, and year-round access to your planning team. Tax return preparation is typically bundled at a reduced rate for planning clients.
We stand behind our work. If your first-year tax savings do not exceed the planning fee, we will discuss adjustments. In practice, this has never happened — our average client saves 5x–10x the planning fee in Year 1, with compounding benefits in subsequent years as strategies like retirement plan contributions and depreciation schedules continue to generate savings.
Every Strategy Is IRS-Compliant
Tax planning is not about finding loopholes or taking aggressive positions. Every strategy we implement is grounded in specific sections of the Internal Revenue Code, Treasury Regulations, and IRS guidance. We document the legal authority for every recommendation in your written tax plan.
Common code sections we rely on: IRC Section 199A (QBI deduction), Section 469 (passive activity rules), Section 168(k) (bonus depreciation), Section 1031 (like-kind exchanges), Section 401(k)/412(e)(3) (retirement plan strategies), Section 179 (asset expensing), and Section 162 (ordinary and necessary business expenses). If we recommend it, we cite it.
Our Process
Discovery & Analysis
We review your last 2-3 years of tax returns, current entity structure, income sources, investments, and goals. We identify every missed opportunity and quantify potential savings.
Written Tax Plan
You receive a detailed, written tax plan with specific strategies, projected savings, implementation steps, and deadlines. No vague advice — every recommendation includes dollar amounts and action items.
Implementation
We execute the plan: filing S-Corp elections, setting up retirement plans, coordinating cost seg studies, restructuring entities, and adjusting estimated payments. We handle the paperwork.
Quarterly Optimization
Tax planning is not a one-time event. Quarterly calls review year-to-date numbers, adjust projections, and identify new opportunities as your income and life circumstances change throughout the year.
Case Study: Dual-Physician Household — $94K Annual Tax Reduction
Client: Married physicians — combined W-2 income of $680K, one spouse with $120K in 1099 consulting income, two rental properties
Problem: Filing jointly with a general CPA who prepared accurate returns but implemented zero proactive strategies. No S-Corp for consulting income. No cost segregation on rental properties. No retirement plan optimization beyond employer 401(k). Effective federal tax rate of 32%.
Strategy: S-Corp election for consulting income with $65K reasonable salary (saving $8,400 in SE tax). Solo 401(k) with employer contributions through S-Corp ($46,000 deduction). Cost segregation studies on both rental properties generating $180K in accelerated depreciation. Backdoor Roth IRA contributions for both spouses. Donor-advised fund for charitable giving consolidation.
Result: Reduced effective federal tax rate from 32% to 22%. Annual tax savings of $94,000. Consulting S-Corp saves $8,400/year in SE tax. Solo 401(k) adds $46,000 in pre-tax retirement savings. Cost seg creates $180K in first-year depreciation acceleration. Charitable strategy generates additional $6,200 in annual savings.
$94,000 — Annual Tax Savings
Want results like this? Book a callFrequently Asked Questions
Related Resources
Tax Strategist Guide
What a tax strategist does, how they differ from a traditional CPA, and how to find one who actually saves you money.
CPA for Physicians
Tax planning specifically designed for physicians — W-2 optimization, 1099 strategy, student loans, and retirement planning.
CPA for Real Estate Investors
Cost segregation, REPS, STR loophole, 1031 exchanges, and entity optimization for real estate portfolios.