‘Veterinarian saves nearly $35,000 in taxes.’
By planning in advance you can use different tax brackets to your advantage.
1 min read

Money Found

1 November 2023

Veterinarian saves nearly $35,000 in taxes.

Angie M Grainger

Veterinarian

Money Found

A successful veterinarian was building up lots of money in the corporate checking account. This was great news of the business success.

However, because the money was inside the corporation, it couldn’t be taken out without getting taxed on it again. They wanted to invest that money into real estate for their personal finances, so they decided to borrow the money from the corporation.  

This is a great strategy, and it works. 

They knew they had to pay interest on the loan to the corporation, so they set the interest rate high, knowing that the corporation has a lower tax bracket.

They thought this would save them money.  That is logical thinking!

However, to get that interest back out of the corporation, they still have to pay tax on it!

So, by lowering the interest rate and putting less interest income into the corporation, they can save a lot of taxes over 10 years.

Exclusive openings available for CFO Services.

Book discovery call

Exclusive openings available for CFO Services.

Book discovery call

Exclusive openings available for CFO Services.

Book discovery call

Exclusive openings available for CFO Services.

Book discovery call

Someone you’re thinking of?

Use this button to ‘copy’ the article link and ‘paste’ to your friends!

Technical INformation

Want to see how we did this?

(this is the technical side of things that accountants love. Don‘t worry if it‘s not for you—we’re with you!)

Why settle for anything less than your own, personal CPA firm?

Why settle for anything less than your own, personal CPA firm?

Our team of Certified Public Accountants, Personal Financial Specialists, and Certified Financial Planners® is dedicated to personal finance—so we’re dedicated to you.

Our team of Certified Public Accountants, Personal Financial Specialists, and Certified Financial Planners® is dedicated to personal finance—so we’re dedicated to you.

Prosper-ent

one who prospers.

Prosper-ent

one who prospers.