The Doctor’s Guide
to Achieving
True Wealth Potential

Tax and Investment Strategies:
The Doctor’s Comprehensive Guide

As a doctor, you are well aware of liability so we have to start with the disclaimer: This is not financial advice. This guide is put together based on research and interviews of professionals. We are happy to talk with your CPA, but we are not your CPA or your financial planner. Always consult your professional advisor before acting.

The Guide

Scale: 1 - 10
Time: T (1 is little time, 10 is a lot of time)
Difficulty: D (1 is easy, 10 is complicated)
Effect: E (1 saves little, 10 saves a lot)

Start Here: Simple, but complete explanation of how income taxes work.

Tax Savings Strategies

I. Retirement and Health Savings

  1. 401(k), 403(b), and IRAs - employed W2 doctors (T:1 / D:1 / E:10)

  2. SEP IRA, Solo 401(k), and DBPs - 1099 for self-employed doctors (T:1 / D:1 / E:10)

  3. Health Savings Account (HSA) (T:4 / D:2 / E:1)

II. Tax Incentives and Credits

  1. Section 179 deduction

  2. Qualified Business Income (QBI) Deduction

  3. Utilize tax credits

  4. Work Opportunity Tax Credit

  5. Research and Development Tax Credit

  6. Education-related tax benefits

  7. Student loan interest deduction

  8. American Opportunity Tax Credit

  9. Lifetime Learning Credit

  10. Contributing to a 529 plan

  11. Bonus depreciation

  12. Conservation easements

  13. Deferred compensation plans

III. Charitable Contributions

  1. Standard donations

  2. Donor Advised Funds

  3. Charitable Remainder Trusts

IV. Business Structure and Tax Planning

  1. S Corporation

  2. Business Entity Classification Election

  3. Deductions for medical supplies and equipment

  4. Deducting professional expenses

  5. Hiring family members

  6. Home office deduction

  7. Deducting travel expenses

  8. Deducting vehicle expenses

  9. Succession planning

Investment Strategies

A. Real estate investments

B. Tax-loss harvesting

C. Tax-exempt investments

Advanced Strategies

A. Sale leaseback for doctors owning their medical office

B. Captive insurance companies

C. Income splitting through family trusts

D. Like-kind exchanges (Section 1031 exchanges)

F. Grantor retained annuity trusts (GRATs)

G. Investing in opportunity zones

H. Structured installment sales

Private Equity Investing (get benefits of a specific industry passively)