Recently, we met with three doctors in group practice regarding their tax and financial planning matters. When asked what level of tax avoidance they practiced through their corporation, they replied: “None; since each doctor had different levels of expenses for such items as business car, travel, continuing education, meals and entertainment, insurances, and retirement plan contributions, none of these expenses were run through the corporation, in order to maintain fairness. Rather, no retirement plan was funded and each of the remaining expenses was included on the doctor’s individual tax returns for deductibility.”
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