When James joined us in late 2023, his California-based S-Corp was doing well, earning $350,000 annually. But he knew his tax strategy wasn’t optimized—and when he joined Gelt we confirmed he was leaving money on the table.
Here’s how we saved James $20,000–$30,000 while ensuring full compliance:
- Adjusting His Salary: James was paying himself more than industry standards for S-Corp owners, leading to excessive payroll taxes. We helped him set a reasonable compensation, cutting his tax burden significantly.
- Leveraging the California PTET: We guided James through the state’s Pass-Through Entity Tax election, letting him deduct state taxes on his federal return and bypass the $10,000 SALT cap.
- Identifying Overlooked Deductions: By reviewing his expenses, we uncovered deductions James had missed—like home office costs, car use, and travel—reducing his taxable income further.
- Boosting Retirement Contributions: We helped James set up a Solo 401(k), enabling him to contribute $69,000 in 2024, using a backdoor Roth conversion for added tax benefits.
With these strategies, James saved big and gained peace of mind. Now, he’s free to focus on growing his business, confident his finances are optimized. Could we do the same for you?
