Most of the Dr’s I know make less than $300k taxable income because they shelter income.
“Most of the Drs I know make less than $300k taxable income because they shelter income.”
Most of the high income days for Dr’s are past. Things have changed. As a CPA with a lot of MD clients, I issued W-2’s to Dr’s in the 1980’s for in excess of $1 million per year. Health care was my specialty for years and I’ve worked in and planned for the transitions from the old cost reimbursement through diagnosis related group payments (factory medicine).
Thankfully I have now retired as the chaos in medical payments has destabilized the profession. On top of that, with the board certification program in effect since the 1980’s, older physicians who were grandfathered are now retiring due to age. The younger physicians who are required to take comprehensive boards every ten years are quitting the profession much younger rather than face them again.
I’ve spoken with many Dr’s who state that if the tax rates reach above 50% they will retire or work part time.
One of the biggest cuts will be in radiology. If the government creates a shortage of diagnostic testing in areas such as cancer, the disease will progress during the delay period to the point where treatment is futile.
Unless they have a charitable trust or move their profits/assets off shore, exactly how do they shelter their income?
There is always lots of talk about the rich not paying taxes because of trusts, but that is a fallacy. Revocable and irrevocable trusts do not reduce income and estate taxes, unless assigned to a charitable foundation where they may be a board member and the board gives them a salary.
While personal trusts make it easier to transfer assets without going through the long process of probate, they don't negate the estate taxes. I know; I've had one for years. I've always wondered why the Dims whine about the rich not paying "their fair share" because of tax loopholes. Show me the loopholes. I'd love to take advange of them. They don't exist, except for salaried board members in charitable trusts and/or move assets off shore.
Income (including dividends), capital gains, estate (death) taxes have and still do exist no matter how rich. Please let me know where these shelters are in the USA. Not talking about charitable contributions either. Those are money's given out and while they are a tax deduction, it is still money out of pocket, much like a mortgage deduction. Neither are credits, but a small percentage deduction from your gross top line.
Seriously, show me how to shelter my income, maybe I'm missing something. I'll give you a finders fee...haha. BTW, good to see you're still around.