SGP Case Study: How Dr. Andrews Saved $250,000 Per Year

The Situation: A Physician Paying $512,000 Per Year in Taxes

Dr. Andrews (name changed for privacy) is a Los Angeles-based physician specializing in orthopedic surgery. His practice generates $2.1 million in annual income. After standard deductions, retirement contributions, and his CPA's best efforts, his annual federal and California state tax bill was $512,000.

That is nearly half a million dollars per year — money that could be building wealth, funding his children's education, or supporting causes he cares about. Instead, it was going to the IRS and the Franchise Tax Board.

Dr. Andrews had tried the usual approaches: maximizing his 401(k), implementing a defined benefit pension plan, and optimizing his S-Corp salary. His CPA was competent and thorough. But the math was clear — compliance-focused planning had reached its ceiling.

When Dr. Andrews learned about the Strategic Giving Partnership (SGP), he was skeptical. A 50% reduction sounded too good to be true. His CPA was skeptical too. But the legal documentation was thorough, and the results speak for themselves.

Before the SGP: Dr. Andrews' Tax Profile

| Category | Amount |

|---|---|

| Annual practice income | $2,100,000 |

| Federal income tax | $342,000 |

| California state tax (13.3%) | $125,000 |

| Self-employment / Medicare tax | $45,000 |

| Total annual tax liability | $512,000 |

| Effective tax rate | 24.4% (after deductions) |

| Marginal rate on next dollar | 50.3% (federal + state) |

Dr. Andrews' CPA had already implemented:

• •Maximum 401(k) contributions ($66,000)
• •Defined benefit pension plan ($175,000 annual contribution)
• •S-Corp salary optimization
• •Standard business deductions

Even with these strategies, his tax bill remained over half a million dollars annually.

The SGP Implementation

The SGP was implemented over an 8-week period:

1. 1.Weeks 1-2: Qualification and financial review — we analyzed Dr. Andrews' tax returns, practice structure, and charitable interests
2. 2.Weeks 3-4: Structural design — our team designed a partnership structure with a qualified 501(c)(3) focused on medical education
3. 3.Weeks 5-6: Legal review — independent tax attorneys prepared legal opinion letters confirming the structure's compliance with IRC Section 170
4. 4.Weeks 7-8: Entity formation — the partnership was established, the foundation was created, and the structure became operational
5. 5.Ongoing: Annual management — our team handles compliance, coordinates with Dr. Andrews' CPA, and manages the foundation's charitable activities

After the SGP: The New Tax Profile

| Category | Before SGP | After SGP | Savings |

|---|---|---|---|

| Annual practice income | $2,100,000 | $2,100,000 | — |

| SGP charitable deductions | — | ($530,000) | — |

| Adjusted taxable income | $2,100,000 | $1,570,000 | — |

| Federal income tax | $342,000 | $185,000 | $157,000 |

| California state tax | $125,000 | $68,000 | $57,000 |

| Self-employment / Medicare | $45,000 | $9,000 | $36,000 |

| Total annual tax liability | $512,000 | $262,000 | $250,000 |

| Foundation charitable grants | — | $115,000 | — |

| Net financial benefit | — | — | $135,000 |

Key result: Dr. Andrews' annual tax bill dropped from $512,000 to $262,000 — a reduction of $250,000 per year. After accounting for the $115,000 in charitable grants made through his foundation, his net financial benefit is $135,000 per year. He pays less in taxes, funds medical scholarships, and keeps more money.

The 10-Year Projection

| Metric | Without SGP | With SGP |

|---|---|---|

| Total taxes paid (10 years) | $5,120,000 | $2,620,000 |

| Total charitable impact | $0 | $1,150,000 |

| Total tax savings | — | $2,500,000 |

| Net financial benefit (after charity) | — | $1,350,000 |

Over 10 years, Dr. Andrews saves $2.5 million in taxes while directing $1.15 million toward medical education scholarships. The net financial benefit — money he keeps that he would have otherwise paid in taxes — is $1.35 million.

If the $135,000 annual net benefit is invested at 8% returns, the 10-year compounded value exceeds $1.95 million.

What Changed for Dr. Andrews

Beyond the numbers, three things changed that Dr. Andrews did not expect:

1. The Scholarship Recipients

Dr. Andrews' foundation has funded 23 medical scholarships in its first three years. He personally reviews applications and meets scholarship recipients annually. Several recipients have written to thank him, sharing how the scholarship changed their path to medicine.

"I went into this for the tax savings," Dr. Andrews told us. "But the scholarship program has become the part I am most proud of."

2. A Deeper Advisor Relationship

Before the SGP, Dr. Andrews' relationship with his financial advisors was transactional — annual tax prep, quarterly check-ins, standard advice. The SGP created a deeper strategic relationship where his tax planning, charitable giving, and wealth building are integrated into a single framework.

3. CPA Collaboration

Dr. Andrews' CPA was initially skeptical of the SGP. After reviewing the legal opinion letters and seeing the first year's results, the CPA became a supporter and has since referred three other physician clients. The SGP did not replace the CPA — it gave the CPA a more powerful tool to work with.

Is Your Situation Similar?

Dr. Andrews' profile is common among our physician clients:

• •High, stable income ($1.5M+)
• •Standard tax planning already maximized
• •Frustration with the size of the annual tax bill
• •Interest in charitable giving but unsure how to make it financially meaningful

If this describes your situation, the SGP could deliver similar results. Every client's structure is different, but the fundamental math — a 50% reduction in annual tax liability — is consistent across qualified clients.

To explore whether the SGP fits your practice, schedule a confidential qualification call. For more on how the SGP works specifically for physicians, read our SGP for Physicians guide.

You can also visit our case studies page for additional examples across different professions and income levels.

KC Chohan is the founder of Structural Tax Advisors and a Forbes Finance Council member. He specializes in advanced tax reduction strategies for high-net-worth business owners, physicians, and attorneys.