We Helped a California Construction Business Owner Save Nearly $50k In Year One of Tax Advisory

Our Initial Tax Advisory Assessment

With decades of technical experience helping our clients with taxes & accounting, our firm is uniquely positioned to help construction business owners reduce their tax liabilities with tax planning & strategic implementation.

Our work with this client, a California construction business owner who loves to build with his team, involved a multi-step process with strategic accounting & tax planning.

As a tax advisory & accounting firm, we frequently see highly skilled business owners who are experts in their field paying more than they should be in state & federal income taxes, eating away at their ability to re-invest back into their business.

Comprehensive Tax Planning as the Foundation 

Operating a construction business in California comes with unique challenges. Our tax advisory team understands that California contractors face some of the highest state tax rates in the nation, strict contractor licensing requirements, complex workers’ compensation regulations, tough environmental compliance standards, & detailed reporting requirements for both state and local projects.  

To become a successful business owner in California, you must learn how to adapt to competition,  high state taxes, rising material costs and complex regulatory requirements.  We believe that tax advisory plays an important role in your business success.

On top of all of these factors involved in operating your construction business in California as a business owner, you will quickly discover the value of accurate accounting, accounts receivables, accounts payables & payroll documentation in your operations.

Building Efficiencies with a Comprehensive Approach

While our client was busy at work managing his construction business, overseeing projects and building for his clients, we were at his side, helping him navigate the complex tax landscape.  For a busy business owner, it’s easy for your accounting & tax strategies to get outpaced by the regulatory framework changes. 

As a strategic tax advisory firm, we align our client’s accounting and tax goals with the constantly evolving state & federal tax environment – maximizing their tax savings and increasing confidence throughout the tax planning process.

Personalized Tax Advisory Designed for Success

Our process with each client involves a one on one approach where we determine the best tax strategies for each individual scenario. 

Through our assessment of this client’s business operations, we determined that implementing tax planning for this California construction business owner would unlock the ability to maximize their available state & federal tax deductions.

A Brief Summary of The Actions We Took

1. Tax Advantaged Oil & Gas Investing

For this particular scenario, we determined an oil and gas investment strategy would be beneficial.  This strategy provided powerful tax benefits that helped offset California’s high state tax rates for our successful business client. This tax advantaged investment decision has provided significant tax deductions while adding an additional revenue stream to our client’s investment portfolio. 

2. Capturing All Applicable Business Expenses

Next, we implemented an accountable plan reimbursement system that saved our clients thousands in taxes, while ensuring our client could properly document his business expenses for both state and federal purposes. We also utilized bonus depreciation strategies for his equipment purchases, securing another significant chunk in deductions. 

3. Optimizing for Health Savings & Retirement

For healthcare planning, we set up a Health Savings Account (HSA) that provided additional tax advantages – a crucial benefit in California’s high-cost healthcare market. The primary reason we recommend HSAs as a simple tax advantaged savings account is that pre-tax payroll deductions can go towards future qualified health care expenses, tax-free to the IRS. 

We also executed a Backdoor Roth IRA strategy, allowing our client to put away additional funds towards retirement.  In our experience,  “Backdoor Roth IRA” contributions are useful for successful business owners that seek a work-around to the limits of standard Roth IRA contributions.  Another reason we like the Roth IRA as a long term strategy is because this type of retirement account does not require ‘minimum distributions’ in retirement.

Looking Forward with On-Going Advisory

The results of our tax advisory work with this client speak for themselves.  In the first year alone, our client, a local construction business owner, saved over $46k in taxes after tax advisory. The strategies we implemented were specifically designed for long-term financial success in California’s competitive business environment.

With our work, we help clients build wealth for retirement through efficient tax and accounting practices, despite high tax rates. We specialize in helping business owners navigate the unique tax challenges of California and other high tax states.

We’re pleased to see our clients put their hard earned money back into their business, improve their tax strategies, and build their wealth for retirement. With a proper tax plan in place, we set up our tax advisory clients for tax efficiency year after year.

As your tax advisory partner, we strive to be your business & accounting resource for success.

Our firm values the impact of our work helping small business owners to utilize the same tax strategies as the mega-wealthy.