What benefits can a US. business owner realize from the advance planning strategies (APS) program?
CASE STUDY
The following summary was an actual case installed by The APS Program Specialist.
Company names and participants have been changed to protect client confidentiality.
Medical Practice
DR. HAROLD SCHWARTZ, P.C.
• Harold Schwartz, M.D., Age 54, is a Plastic Surgeon with a 20-year Old Practice
• His Practice is a Professional Services Corporation, 100% Owned by Dr. Schwartz
• He Has Four Other Doctors Working for Him as Independent Contractors
• Gross Revenues = $3.8 mm
• Qualified Payroll = $1.01 mm
• Salary and K-1 Income to Dr, Schwartz = $900K
• 1 Key Employee: Son Alex (M.D.)
GOALS
• Reduce His Tax Liability (currently pays approximately $396K in taxes on $900K
income)
• Create a Viable Retirement Plan (he only needs his current salary from the practice to
meet his lifestyle needs)
• Wants to Practice Medicine (instead of being buried in paperwork and bogged down with
administrative responsibilities)
FINANCIAL SUMMARY
• Total tax savings of $190,096 ($434K X marginal Federal and State
combined rate of 44%)
• Total annual key-Man monies set aside - $400K
• In 10 YRS: $400,000 X 10 Years = $4,000,000 @ 7.15% EARNINGS = $5,817,365