Wealthy Mom MD Podcast 229: Maximize Your Income: Tax Strategies Every Physician Must Know with Doc Wealth
Jan 23, 2025
In this enlightening discussion, Dr. Mark Applegate, an emergency medicine physician and co-founder of Doc Wealth, shares vital tax strategies specifically for physicians. He highlights the stark differences between CPAs and tax strategists, advocating for tailored financial planning. Mark delves into the unique financial challenges faced by W-2 employees versus business owners and reveals investment opportunities like real estate and the Augusta Rule. His insights promise to help physicians maximize income and minimize tax burdens effectively.
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Most CPAs Lack Tax Strategy Skills
- Most CPAs do not specialize in tax strategy; it's a subspecialty that requires experience beyond initial training.
- Effective tax savings require strategic actions during the tax year, not just filing taxes afterward.
W-2 Physicians: Use Mega Backdoor Roth
- W-2 physicians should consider the mega backdoor Roth to contribute up to $69,000 post-tax, growing tax-free.
- Check if your employer's 401k plan allows in-service withdrawals to use this strategy effectively.
Short-Term Rentals for W-2 Tax Savings
- W-2 physicians can benefit from short-term rental real estate investments by engaging in at least 100 hours of active participation.
- This allows accelerated depreciation deductions, significantly lowering taxable income against W-2 earnings.