Tax Savings Pave the Way for Working Couple to fund Children’s Future Schooling
Client Snapshot
Industry: Full-Time Employees
Gross Revenue: $350,000
Entity Type: No Entity
The Challenge
A couple with young children wanted to find a way to send their kids to their alma mater in the next 10 years, but didn’t currently have the budget to save for it. They also managed their own investments and did not understand how to mitigate capital gains taxes on investment earnings.
Encurio’s Approach
These Clients had a very specific goal, which was fun. In speaking with the client, we learned that one of them worked with their family’s company as an employee. This little piece of seemingly insignificant information that they shared was vital to our approach:
- Income Shifting and employing the kid’s in the family company
- Tax Loss Harvesting education
- Document retention for non-cash donations
The Impact
We were able to provide the Client’s a tax strategy that would save them roughly $16,148 in taxes annually over the next 10 years, which would give them the $150k they needed to pay for the private school. This did not affect their take home pay or personal budget, it just shifted the taxes from going to the governement and into their savings plan for their kid’s education. Tax loss harvesting will save them annually depending on their investment activity, allowing them to more confidently manage their investments. This adjustment to their strategy will allow them to provide the education they have dreamed of for their children and that’s worth more than the tax savings.
To learn more about how Encurio’s strategies could improve your businesses finances, set a meeting with us.
