Through our experience working with physicians, we have discovered three key areas that most doctors are not taking full advantage of:
1. Tax-Saving Strategies
2. Proper Investment Allocation
3. Proper Debt Repayment
With more and more physicians becoming specialists in their field, the average salary of medical practitioners is increasing rapidly. According to Canadian Institute for Health Information, the average salary of a physician was $354,000 in 2019-2020. Due to the marginal tax bracket, this results in physicians paying twice as much on every dollar they earn as the average Canadian.
What Can Be Done to Reduce The Physician’s Tax Burden?
Through our work with physicians, Bilyk Financial Advisors have a three-part plan that can drastically reduce income taxes:
- First, you have to structure your business properly. As a business owner, you can take control of your income taxes rather than having a company make those decisions for you. We can advise clients on what type of business to file as, as well as how to flow through profits in a tax-advantaged way.
- Second, you must maximize pre-tax contributions to specially designed retirement accounts. Bilyk Financial can help you tailor specially designed retirement accounts that allow you to increase your pre-tax contributions far beyond the typical limit and drastically decrease your tax liability.
- Bilyk Financial works side-by-side with CPAs to reduce taxes further by maximizing write-offs within the business.
By using all three of these strategies properly, you will be able to save money in taxes every single year.
If you feel you’re overpaying in taxes, or even you’re not sure…let’s talk! Bilyk Financial offers complimentary consultations. For more information, visit us here.