True Story! A physician cut his 70-hour workweek to just 30 hours; tripled his income; and reclaimed valuable family time, while creating the possibility of retirement by the age 40.
At Prithi Daswani CPA PL, we made this a reality for one hardworking doctor. Our tailored financial strategies didn’t just boost his bottom line; they transformed his entire way of life. No asking anyone for time off or hoping for a few days of respite. Living his life on his own terms.
Let’s explore how we reshaped this physician’s financial future and stick around to learn about an exciting new venture born from this success.
Transforming Financial Health: A Success Story with Prithi Daswani CPA PL
At Prithi Daswani CPA PL, we love making numbers work for our clients. One of our favorite success stories features a talented physician who took the leap from W2 employee to 1099 independent contractor. The result? A remarkable improvement in his financial situation and overall quality of life. Here’s how we made it happen.
Background: Juggling Multiple Roles
Meet our client: a dedicated doctor, single father, and all-around superhero. He was earning between $300,000 and $400,000 annually by juggling both a W2 job and some 1099 gigs. Despite his impressive earnings, he faced several financial headaches:
- Complex Financial Situation: With a young daughter at home and elderly parents to support (both from the medical field), he had a lot on his plate.
- Poor Accounting: His previous accountant’s cookie-cutter approach left his finances tangled and subject to unnecessary penalties.
- Transition Uncertainty: He wasn’t sure if going full-time as a Locum Tenens doctor was the right move and needed expert advice.
Our Magic Touch: Strategic Financial Restructuring
When he came to Prithi Daswani CPA PL, we rolled up our sleeves and got to work. Here’s how we turned his financial frown upside down:
- Setting Up an S-Corporation:
- We established an S-Corp for him, unlocking a treasure chest of tax benefits and streamlining his income and expenses.
- IRS Penalty Abatement and Payroll Cleanup:
- We worked our magic with the IRS to get penalties abated, lightening his tax load.
- Our team tidied up his payroll, ensuring everything was shipshape and compliant.
- Optimized Family Involvement:
- His parents initially helped with correspondence and travel management. Recognizing their invaluable contribution, we officially put them on the payroll as administrative assistants.
- This clever move enabled him to tap into over $300,000 of tax-free income benefits and deduct business expenses that were previously off-limits as a W2 employee.
- Healthcare and Benefits Optimization:
- By employing his parents, they qualified for healthcare benefits through the marketplace, easing his financial burden.
- Enhanced Earnings and Work-Life Balance:
- Transitioning fully to a 1099 contractor allowed him to boost his earnings to $600,000-$700,000 while cutting back to working just three days a week.
- This shift gave him more time to enjoy life with his daughter and reduced his stress levels significantly.
The Sweet Results: Long-Term Success
The strategic changes we implemented led to profound and lasting benefits for our client:
- Significant Tax Savings: Our optimized business structure and expense management saved him over $150,000 in taxes with an effective tax rate of 8%.
- Maximized College Savings: With his tax savings, he fully funded his daughter’s 529 college savings plan in just three years – an 18-year job done in record time!
- Home Refinancing: With his finances in pristine order, he refinanced his home from a 7% interest rate to a dazzling 2% with zero closing costs.
- Proactive Tax Management: Regular, periodic tax payments were budgeted in advance, eliminating surprise bills, and smoothing out his cash flow.
Empowering Medical Professionals: Our New Specialization
- Inspired by stories like this, we’re thrilled to introduce our new venture: The Doctors CPA, supported by Prithi Daswani CPA PL. This new business is dedicated to the unique financial needs of medical professionals. Our expertise covers:
- W2 to 1099 Transition: We provide all the guidance you need to transition from W2 employee to 1099 independent contractor or maintain BOTH positions. Our services include detailed financial analysis, tax planning, and setting up optimized structures to maximize your benefits.
- Locum Tenens Financial Management: Already a locum tenens physician? We help you organize your finances, ensure compliance, and maximize your tax savings. Our goal is to simplify your financial life so you can focus on your practice.
- Personalized Financial Solutions: We tailor our services to address the specific challenges and opportunities in the medical field, from managing fluctuating incomes to maximizing retirement contributions and college savings plans.
- Family Involvement Optimization: Just like we did for our star client, we help integrate family members into your business structure in a tax-efficient way, including setting up salaries for administrative roles and leveraging tax-free income opportunities.
At The Doctors CPA, we’re passionate about empowering medical professionals with the knowledge and strategies they need for financial success. Whether you’re thinking about a switch to independent contracting or looking to optimize your current setup, our expert team is here to guide you every step of the way.
Conclusion: Your Path to Financial Empowerment
Through our comprehensive and personalized approach, we helped our client triple his income, reduce his workload, and secure his family’s financial future. At Prithi Daswani CPA PL, we’re dedicated to empowering our clients with the knowledge and strategies they need to achieve their financial dreams. This success story is a shining example of the transformative power of expert financial planning and personalized accounting services. With our new focus on medical professionals through The Doctors CPA, we’re ready to help even more clients achieve similar success.