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BCMS – TOGETHER
WE STAND

Three Tax Savings Strategies to

Start Using This Year

By Oakwell Private Wealth Management, Platinum Circle of Friends Sponsor of BCMS

Tax savings strategies can help you keep more of what you have events can include rebalancing your investments, converting your Roth
earned. There are many types of strategies that could apply to your per- IRA, income changes, withdrawing from retirement accounts and
sonal situation and help you protect and grow your wealth. more. Here are a few ways to be tax-smart as you give back:
This guide by your Oakwell Private Wealth Management team pro- • Donate appreciated non-cash assets instead of cash. This strategy can
vides a brief overview of three tax savings strategies physicians can start help eliminate the capital gains tax typically incurred by selling or
using for this year and beyond. Please consult with your CPA on what rebalancing assets before donating.
is right for your specific circumstances. • Combine two years of contributions into one year if your itemized
deductions for one year are slightly below the standard deduction
Invest in the right retirement vehicles level.
Investing in your retirement is beneficial both now and in the future. • If you are over the age of 70.5, make Qualified Charitable Distri-
When you put money into tax-deferred retirement accounts, you lower butions to reduce your IRA balance and potentially reduce future
your taxable income. That money then gets invested, tax-deferred, from tax liabilities.
whenever you contributed until you take money out. • Establish a charitable remainder trust, a charitable lead trust, or a
It can be challenging to choose the right retirement vehicle for your donor-advised fund account. These strategies can be complicated, and
situation. Each option has its own benefits, both tax-related and other- their benefits may depend heavily on your specific situation, so ensure
wise. If you need help understanding which retirement vehicle might be you consult with your tax or legal advisors before taking action.
right for you, reach out to your CPA or Oakwell experts for guidance.
You should know that contributions to most IRAs, including Roth Philanthropic donations have risen to historic levels in recent years.
IRAs, must be put in by the 2022 tax deadline. SEP IRA and profit Talk to your CPA about whether these charitable deductions and
sharing and cash balance contributions can be submitted later if you strategies could help offset some tax liabilities on any potential taxable
file a tax return with an extension. However, all employee contributions events you might experience.
need to be made before the end of the actual tax year. Let us help you keep more of what you have earned by coordinating
with tax professionals and wrapping a complete financial strategy
Consider changing business entity types around you to protect and grow your wealth. To learn more about how
Changing business entity types could improve your tax burden. we can root physicians’ financial success in our collective knowledge,
For example, if you have an LLC generating income, there may be contact Brian T. Boswell, CFP, QKA at 800.556.2593 or send an email
benefits to converting it to an S corporation. If you have multiple to bboswell@oakwellpwm.com.
partners or shareholders, consider if a partnership structure makes
more sense for you. Brian T. Boswell, CFP®, QKA is a Sr. Private Wealth Advisor
Of course, you will have to pay some taxes regardless of which busi- and Partner with Oakwell Private Wealth Management.
ness entity type you choose. However, there may be value in changing
your corporate structure to suit your personal situation. The information contained in this article represents the opinion of Oak-
Another business-related tax strategy involves planning your business well Private Wealth Management and should not be construed as person-
deductions. For example, you may reach the end of one tax year and alized or individualized financial advice. Oakwell Private Wealth
realize you need to purchase new equipment. Consider and compare Management is not a CPA Firm. Any strategies presented in this article
your projected income for that year and the next one. This step will should be discussed with the appropriate tax or legal advisors before any
help you decide when to purchase the equipment and take the deduc- action is taken.
tion for that expense.

Engage in tax-smart philanthropy
Charitable giving can be a tax-effective strategy, especially if you have
experienced or expect to experience any potential taxable events. These

28 SAN ANTONIO MEDICINE • January 2023