Case Studies
Real-world tax optimization results for business owners and real estate investors.
At AE Tax Advisors, our work centers on advanced tax planning for business owners and real estate investors who have outgrown traditional compliance-based accounting. The following case studies reflect real engagements, real tax problems, and real outcomes achieved through proactive strategy, entity design, timing, and coordination.
All case studies are anonymized. Dollar figures are rounded. Strategies shown vary by facts and circumstances and are not universal recommendations.
Business Owners
E-Commerce Owner Saves $47K/Year with S-Corp Restructuring
How an e-commerce business owner generating $1.2M in annual revenue restructured from a sole proprietorship to an S-Corp, saving $47,000 per year in self-employ...
Read the Full Case StudyMedical Practice Saves $89K with C-Corp + Retirement Stacking
How a medical practice generating $2.5M in revenue converted from S-Corp to C-Corp and implemented defined benefit plan stacking, fringe benefit optimization, a...
Read the Full Case StudyConstruction Company Saves $156K with Equipment Depreciation + Entity Layering
How a $4M construction company used Section 179 and bonus depreciation on $620K in equipment purchases, combined with a management company structure, to save $1...
Read the Full Case StudyRestaurant Group ($6M) Saves $134K with Multi-Entity + Cost Seg + Credits
How a three-location restaurant group generating $6M in combined revenue saved $134,000 through multi-entity restructuring, cost segregation on owned buildings,...
Read the Full Case StudySaaS Founder Saves $38K with R&D Credit + S-Corp
How a SaaS company founder generating $800K in revenue implemented the R&D tax credit with payroll tax offset, S-Corp election, and Solo 401(k) to save $38,000 ...
Read the Full Case StudyDental Practice Saves $94K with Cost Seg + Entity Restructuring + DB Plan
How a dental practice generating $1.8M in revenue used cost segregation on its owned office building, separated real estate into a dedicated LLC, and implemente...
Read the Full Case StudyAuto Dealership Group Saves $187K with Cost Seg + Fleet Depreciation
How an auto dealership group generating $12M in revenue used cost segregation on showroom and service bay facilities, fleet vehicle depreciation under MACRS, an...
Read the Full Case StudyLaw Firm Partner Saves $95K with S-Corp + Cash Balance Pension Plan
How a law firm partner generating $1.5M in revenue implemented an S-Corp election with optimized reasonable compensation and a cash balance pension plan to save...
Read the Full Case StudyTech Consulting Firm Saves $62K with IC Classification + Accountable Plan
How a tech consulting firm generating $3M in revenue optimized independent contractor vs employee classification, implemented an accountable plan, and restructu...
Read the Full Case StudyVeterinary Practice Saves $83K with Cost Seg + Equipment Section 179
How a veterinary practice generating $2.2M in revenue used cost segregation on its clinic building and Section 179 expensing on diagnostic and surgical equipmen...
Read the Full Case StudyManufacturing Company Saves $142K with R&D Credit + MACRS Acceleration
How a manufacturing company generating $8M in revenue implemented the R&D tax credit on process improvements and accelerated MACRS depreciation on production eq...
Read the Full Case StudyMarketing Agency Saves $41K with Home Office + Augusta Rule + S-Corp
How a marketing agency generating $900K in revenue combined a home office deduction, the Augusta Rule for rental income exclusion, and S-Corp optimization to sa...
Read the Full Case StudyTrucking & Logistics Company Saves $118K with Fleet Depreciation + Fuel Tax Credits
How a trucking and logistics company generating $5M in revenue maximized fleet depreciation under MACRS, captured federal fuel tax credits, and optimized entity...
Read the Full Case StudyPrivate Medical Practice Saves $168K with C-Corp Conversion + Defined Benefit Plan
How a private medical practice with 4 physicians generating $6M in revenue converted to a C-Corp and implemented a defined benefit plan to save $168,000 annuall...
Read the Full Case StudyInsurance Agency Saves $54K with Commission-Based Entity Optimization
How an insurance agency generating $2M in commission revenue optimized entity structure with S-Corp layering and deferred compensation to save $54,000 annually....
Read the Full Case StudyLandscaping Contractor Saves $49K with Equipment Section 179 Stacking
How a landscaping and contracting company generating $1.2M in revenue stacked Section 179 deductions on equipment, optimized vehicle depreciation, and implement...
Read the Full Case StudyS-Corp Owner Saves $31K by Correcting $44K Officer Compensation
How an S-Corp generating $1.3M in revenue was paying only $44K in officer compensation, far below IRS standards. Restructured to $95K, added accountable plan, home office, MERP, and Augusta Rule...
Read the Full Case StudyBusiness Owner Saves $28K Optimizing QBI Before Phase-Out Thresholds
How a business owner at $425K taxable income used retirement contributions, charitable timing, and income deferral to preserve the full 20% QBI deduction...
Read the Full Case StudyFreelance Consultant Saves $22K/Year with S-Corp Election + Solo 401(k)
How a freelance consultant earning $340K on Schedule C elected S-Corp status, set payroll at $85K reasonable compensation, and implemented a Solo 401(k)...
Read the Full Case StudyOwner of Three S-Corps Saves $67K Through Aggregation + Cross-Entity Planning
How a multi-business owner aggregated three S-Corps for QBI, implemented cross-entity management fees, and consolidated retirement into a defined benefit plan...
Read the Full Case StudyBusiness Owner Recovers $19K with Late S-Corp Election Under Rev. Proc. 2013-30
How a business owner who missed the S-Corp deadline filed Form 2553 with late election relief, retroactively saving $19,000 in self-employment taxes...
Read the Full Case StudyGeneral Contractor Saves $41K/Year Restructuring from Sole Prop to S-Corp
How a general contractor earning $580K on Schedule C restructured to an S-Corp with $120K reasonable compensation, accountable plan, and Solo 401(k)...
Read the Full Case StudyMedical Practice Saves $72K Converting from S-Corp to C-Corp
How a medical practice at $1.8M revenue converted from S-Corp to C-Corp for the 21% flat rate, implemented MERP and a defined benefit plan, saving $72,000/yr...
Read the Full Case StudyTwo-Partner Consulting Firm Saves $36K with Partnership to S-Corp Conversion
How a two-partner consulting firm restructured from partnership to S-Corp for SE tax savings, each partner saving $18,000 per year...
Read the Full Case StudyBusiness Owner Saves $54K with Holding Company + IP Licensing Structure
How a business owner with four LLCs created a holding company with centralized management, IP licensing, and tax-efficient distributions...
Read the Full Case StudyTech Executive Saves $47K Donating Appreciated RSUs to Donor-Advised Fund
How a tech employee with $400K W-2 and $200K in RSU vesting donated appreciated stock to a DAF, eliminating capital gains and claiming full FMV deduction...
Read the Full Case StudyHigh-Income Earner Shelters $69K/Year via Backdoor + Mega Backdoor Roth
How a W-2 earner at $550K used the backdoor Roth IRA and mega backdoor Roth through their employer plan to contribute $69,000/yr in Roth accounts...
Read the Full Case StudyBusiness Owner Saves $23K with PTET Election Bypassing SALT Cap
How a business-owning couple in a high-tax state used the Pass-Through Entity Tax election to bypass the $10,000 SALT cap, saving $23,000 combined...
Read the Full Case StudyBusiness Owner Recovers $42K from Prior CPA's Income Misclassification
How a prior CPA misclassified $153K in consulting income as Other Income instead of Schedule C. Filed 1040-X amendments for 3 years, recovering $42,000...
Read the Full Case StudyBusiness Owner Recovers $48K Filing Late S-Corp Election + Amended Returns
How a sole proprietor for 6 years filed a late S-Corp election under Rev. Proc. 2013-30 and amended returns, recovering $48,000 in overpaid SE taxes...
Read the Full Case StudyInvestor + Business Owner Saves $83K with Management Company Structure
How a real estate investor with an operating business and 6 rentals created a management company with self-rental strategy under IRC Section 469...
Read the Full Case StudyFamily Business Saves $39K with Multi-Entity Income Splitting Strategy
How a family business used multiple entities to employ family members, shift income to lower brackets, and fund separate retirement plans...
Read the Full Case StudyAmazon FBA Seller ($2.1M) Saves $58K with S-Corp + Inventory Method Change
How an Amazon FBA seller at $2.1M restructured from Schedule C to S-Corp and implemented an inventory accounting method change under IRC Section 471...
Read the Full Case StudyDropshipping Business Saves $31K by Consolidating Multi-State Entity Structure
How a dropshipping business with nexus in 12 states consolidated its entity structure and reduced state filing obligations, saving $31,000 per year...
Read the Full Case StudyDentist Saves $156K with Cost Seg on Practice Building + RE Separation
How a dentist owning a $1.2M practice building performed cost seg, separated real estate into a dedicated LLC, and leased it back for $156K Year 1 deduction...
Read the Full Case StudyConstruction Company ($5M) Defers $320K with Completed Contract Method
How a $5M construction company switched from percentage-of-completion to completed contract method under IRC Section 460(e), deferring $320,000...
Read the Full Case StudyConstruction Company Claims Full $890K Equipment Deduction via Section 179
How a construction company purchasing $890K in heavy equipment used Section 179 and bonus depreciation to deduct the entire cost in Year 1...
Read the Full Case StudyRestaurant Owner Saves $94K with Cost Seg + FICA Tip Credit Stacking
How a restaurant owner with two locations used cost seg on owned buildings and stacked the FICA tip credit under IRC Section 45B, saving $94,000...
Read the Full Case StudySaaS Founder Saves $45K/Year with R&D Credit + QSBS Section 1202 Planning
How a SaaS founder used R&D tax credit against payroll taxes plus QSBS planning under Section 1202, saving $45K annually with potential $10M exclusion...
Read the Full Case StudyStartup Founder Saves $380K with 83(b) Election on Restricted Stock
How a startup founder filed an 83(b) election on restricted stock at incorporation, paying minimal tax, saving $380,000 when the company was acquired...
Read the Full Case StudyManagement Consultant Saves $36K with S-Corp + Augusta Rule + Solo 401(k)
How a management consultant earning $420K elected S-Corp, implemented Augusta Rule, accountable plan, and Solo 401(k), saving $36,000 per year...
Read the Full Case StudyFreelance Designer Saves $18K with Home Office + Vehicle Section 179 + SEP-IRA
How a freelance designer earning $185K implemented home office deduction, Section 179 on a 6,000+ lb SUV, and SEP-IRA to save $18,000 annually...
Read the Full Case StudyReal Estate Broker ($1.4M GCI) Saves $52K with S-Corp + Group Health Plan
How a broker with $1.4M gross commission income and 8-person team restructured commission flow through S-Corp and group health plan, saving $52,000/yr...
Read the Full Case StudyReal Estate Investors
STR Portfolio Offsets $200K Active Income with Cost Seg + Material Participation
How a short-term rental investor with 5 properties used cost segregation, material participation documentation, and a grouping election to generate $200,000 in ...
Read the Full Case StudyCommercial Investor Defers $280K via 1031 Exchange + Cost Seg
How a commercial real estate investor with a $3.5M portfolio executed a 1031 exchange on a sold property and layered cost segregation on the replacement propert...
Read the Full Case StudyFix-and-Flip Investor Saves $67K with Dual-Entity Dealer/Investor Split
How a real estate investor completing 12 flips per year used a dual-entity structure to separate dealer inventory from investment holds, combined with S-Corp ta...
Read the Full Case Study48-Unit Multifamily: $340K Year-One Savings via Cost Seg + REPS
How a 48-unit multifamily property owner used a cost segregation study combined with Real Estate Professional Status and a grouping election to generate $340,00...
Read the Full Case StudyMixed-Use Developer Saves $195K via QOZ + Cost Seg + 179D
How a mixed-use real estate developer used a Qualified Opportunity Zone fund combined with cost segregation on new construction and the Section 179D energy dedu...
Read the Full Case StudyLand Developer Defers $145K with Installment Sales + 1031 Exchange
How a land developer used entity separation, installment sales on lot sales, and a 1031 exchange on retained outparcels to defer $145,000 in taxes....
Read the Full Case StudySelf-Storage Facility Owner Saves $126K with Cost Seg + Automation Equipment Depreciation
How a self-storage investor with 3 facilities used cost segregation on metal buildings and Section 179 on automation equipment to save $126,000 annually....
Read the Full Case StudyAirbnb Arbitrage Operator Saves $38K with Business Expense Optimization
How an Airbnb arbitrage operator managing 15 units without property ownership used business expense optimization and entity structuring to save $38,000 annually...
Read the Full Case StudyMobile Home Park Owner Saves $98K with Cost Seg on Infrastructure + Land Improvements
How a mobile home park owner with 120 pads used cost segregation on infrastructure and land improvements to save $98,000 annually....
Read the Full Case StudyBoutique Hotel Investor Saves $155K with Cost Seg + FF&E + Energy Credits
How a boutique hotel investor used cost segregation, FF&E accelerated depreciation, and energy efficiency tax credits to save $155,000 annually....
Read the Full Case StudyTriple Net Lease Investor Saves $67K with Passive Income Optimization + Grouping Elections
How a triple net lease investor with a $4M portfolio used passive activity grouping elections and strategic cost segregation to save $67,000 annually....
Read the Full Case StudyLake House STR Owner Claims $91K Tax Savings with Cost Segregation
How a $750K lake house STR generated $262K in first-year depreciation through cost segregation and 100% bonus depreciation, saving $91,000...
Read the Full Case StudyFive-Property STR Portfolio Generates $1.1M in Year 1 Deductions
How an investor with five STRs totaling $3.2M used cost seg across the portfolio to generate $1.1M in Year 1 deductions, offsetting W-2 income via REPS...
Read the Full Case StudySTR Owner Claims $187K Catch-Up Depreciation via Form 3115
How an STR owner who held property 4 years without cost seg filed Form 3115 to claim $187,000 in catch-up depreciation in a single tax year...
Read the Full Case StudyMountain Cabin STR Saves $68K with Cost Seg + Augusta Rule
How a $520K mountain cabin STR used cost seg to reclassify $182K into accelerated categories with bonus depreciation, plus Augusta Rule for $34K additional...
Read the Full Case StudyDuplex LTR Owner Claims $144K First-Year Deduction via Cost Segregation
How a $480K duplex LTR generated $144K in first-year depreciation by reclassifying 30% into 5-year, 7-year, and 15-year accelerated categories...
Read the Full Case Study24-Unit Apartment Complex Generates $980K Year 1 Deduction
How a 24-unit apartment building purchased for $2.8M used cost seg to identify $980K in accelerated components for a massive first-year deduction...
Read the Full Case StudyLTR Investor Saves $127K with 1031 Exchange + Cost Seg Recapture Planning
How an LTR investor planning a sale used cost seg analysis to model Section 1250 recapture and structured a 1031 exchange to defer $127K in taxes...
Read the Full Case StudyInherited Property Generates $217K Deduction with Step-Up Basis + Cost Seg
How an inherited LTR with stepped-up basis of $620K used cost seg to maximize depreciation on the new basis, generating $217K Year 1 deduction...
Read the Full Case StudyDual W-2 Couple ($882K) Saves $68K with STR Cost Segregation Strategy
How a dual-income W-2 couple earning $882K purchased an STR with cost seg to create $195K in paper losses offsetting W-2 income, saving $68,000...
Read the Full Case StudyInvestor Claims $340K Catch-Up Depreciation on 3 Properties via Form 3115
How an investor with three properties owned 5+ years that never had cost seg filed Form 3115 to claim $340,000 in catch-up depreciation...
Read the Full Case StudyHigh-Income Physician ($650K) Saves $89K with Spouse REPS + STR Cost Seg
How a physician earning $650K W-2 qualified for REPS through spouse, using STR cost seg to offset W-2 income and saving $89,000 annually...
Read the Full Case StudyBoutique Hotel Renovation ($3.2M) Claims $1.28M via Cost Segregation
How a boutique hotel undergoing a $3.2M renovation used cost seg on improvements, identifying $1.28M in accelerated components for bonus depreciation...
Read the Full Case StudyReal Estate Agent Saves $71K Using Commission Income to Fund STR Portfolio
How a real estate agent used commission income to acquire STR properties, qualified as REPS, and used cost seg on 3 properties to save $71,000 annually...
Read the Full Case StudyMulti-Entity & Complex
4 LLCs Consolidated Under Management S-Corp: $78K Annual Savings
How a business owner operating four separate LLCs consolidated operations under a management company S-Corp with a retirement plan and accountable plan, saving ...
Read the Full Case Study7-Location Franchise Owner Saves $134K with Centralized Planning
How a franchise owner operating 7 locations saved $134,000 through a C-Corp management company, defined benefit plan, FICA tip credit, Work Opportunity Tax Cred...
Read the Full Case StudyREPS + Grouping Election + Cost Seg: $118K Saved Across 6 Rentals
How a property management S-Corp owner with 6 rental properties used Real Estate Professional Status, a grouping election, and cost segregation to convert passi...
Read the Full Case StudyManufacturing Exit: $5.66M Gain Excluded via QSBS + Stock Sale
How a manufacturing company owner selling the business for $6M used the Qualified Small Business Stock exclusion under IRC Section 1202 and stock sale structuri...
Read the Full Case StudyCrypto Mining Operation Saves $72K with C-Corp + Section 179 + Solar ITC
How a cryptocurrency mining operation generating $920K in revenue used C-Corp election, Section 179 on mining rigs, and the solar Investment Tax Credit to save ...
Read the Full Case StudyEquipment Leasing Company Saves $210K with Sec 179 + 3115 Catch-Up
How an equipment leasing company generating $1.8M in revenue used Section 179 stacking, bonus depreciation, a Form 3115 accounting method change for catch-up de...
Read the Full Case StudyProfessional Athlete Saves $174K with Entity Setup + Real Estate Offset
How a professional athlete earning $3M structured entities and used real estate investments to offset active income, saving $174,000 annually....
Read the Full Case StudyPhysician with Side Real Estate Saves $112K with REPS Qualification + Cost Seg Combo
How a physician with side real estate investments qualified for Real Estate Professional Status and combined cost segregation to save $112,000 annually....
Read the Full Case StudyInternational Business Owner Saves $136K with Treaty Planning + GILTI Optimization
How an international business owner with operations in the US and abroad used treaty planning and GILTI optimization to save $136,000 annually....
Read the Full Case StudyNonprofit Founder Saves $78K with Related Party Transactions + Exempt Planning
How a nonprofit founder with related for-profit entities optimized related party transactions and tax-exempt planning to save $78,000 annually....
Read the Full Case StudyHusband-Wife Team Saves $91K with Joint Filing Optimization + Entity Consolidation
How a husband-wife team running three businesses optimized joint filing, consolidated entities, and implemented stacked retirement plans to save $91,000 annuall...
Read the Full Case StudySee What AE Tax Advisors Can Do For You
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