Professional Practice strategies

10 plays in this category. Each one covers the mechanics, who it fits, and the estimated impact — then generates a deep dive against your own numbers.

• Professional Practice

  §831(b) Micro-Captive Insurance Company

  Practice pays $2.85M/yr premium to owner-controlled captive; captive receives tax-free (small insurance co election).

  $500K–$1M/yr federal + state deferral
• Professional Practice

  Cash Balance Plan + 401(k) Stack — $400K+/yr Deductible

  Combine a defined-benefit cash balance plan with 401(k)+profit share — total deductible contributions $400K+/yr for older owners.

  $75K–$150K/yr in federal + state tax deduction
• Professional Practice

  PLLC + Management Company Split

  Professional practice (PLLC) contracts with owner's Management LLC for admin, IP, real estate — shifts income to lower-rate entity.

  $50K–$300K/yr through income shift + protection
• Professional Practice

  Own the Medical/Dental/Law Building via Separate LLC + Lease Back

  Practice rents from professional's own real estate LLC — rent flows to owner tax-favored, building appreciates outside practice.

  $50K–$500K in rent-shift + appreciation capture
• Professional Practice

  Personal Goodwill (Martin Ice Cream) at Practice Sale

  At sale, allocate purchase price to professional's PERSONAL goodwill (patient/client relationships) — capital gain, one level of tax.

  20–37 point tax rate reduction on portion of sale
• Professional Practice

  Management Services Organization (MSO) — Scale Practice with Non-Physician Capital

  MSO owned by non-professionals contracts with PC for management — recapitalize practice with outside capital legally.

  Unlocks $2M–$50M capital access + exit optionality
• Professional Practice

  PTET SALT Workaround — Deduct Full State Tax at Entity Level

  Pass-Through Entity Tax lets practice deduct 100% of state income tax federally, bypassing $10K SALT cap.

  $10K–$60K/yr in recovered SALT deductions
• Professional Practice

  §105(h) Medical Reimbursement Plan — Deduct Family Medical Above Insurance

  C-corp (or spouse-hired setup) can reimburse 100% of family medical expenses tax-free — bypasses 7.5% AGI floor.

  $5K–$25K/yr tax-free medical benefit
• Professional Practice

  Mega Backdoor Roth via Solo 401(k) — $69K into Roth Annually

  Solo practitioner uses solo 401(k) with after-tax contributions + in-plan Roth conversion = $69K/yr into Roth (2024).

  $45K–$50K/yr into Roth = $millions tax-free by retirement
• Professional Practice

  Conservation Easement / Facade Easement (High Scrutiny)

  Charitable donation of development rights on land or historic building — deduction can exceed cash contribution 4×.

  $50K–$500K deduction per easement