Case Design

Fortune 500 Corporate Executive

Background

A corporate executive with W-2 income of $4,000,000 had zero deductions available due to various phase-outs and limitations, and was paying over $1,500,000 each year to the government. Current debt payoff was a priority for the client rather than long term savings and retirement strategies.  

Fortunately, they called one of our Managing Directors at Redwood Tax Specialists!  

The Plan

Based on the client’s preferences, cash flow needs, and budget, we designed their custom tax plan with:  

  • a $160,000 real estate investment opportunity that, when properly administered, generates large annual deductions to offset wage income and is not limited by passive real estate investment rules  

The Results

A tax deduction of $730,000 from the real estate investment reduced the executive’s tax liability by $262,000, delivering a refund of over $252,000!