
The Schmidts
Sometimes in good times, people fail to think about how good it is and make future plans. Thankfully, we found Aaron and his team to help us create something fantastic!
Challenge
Husband and Wife both had amazing years for their business. At the end of the year, there was significant taxable income which was going to cause them to pay a significant amount of taxes.
Process
We took their taxable income and projected income for the remainder of the year and ran it through 28 proven tax strategies.
Solution
We used 4 different tax strategies, Elected the wife’s business as an S-Corp and gave her a salary, formed a Family Management Company to Retain Earnings and be taxed at 21% instead of 32%, Hired their 2 kids for work they have performed for each of the companies, and applied the Augusta Rule for their businesses to rent their home up to 14 days.
Results
We were able to save them $61k which allowed them to take the money and buy 2 rental homes for passive income.