CASE STUDY: OVER $96,000 IN TAXES SAVED ANNUALLY
CLIENT FILE: MARK & JOHN MCCONE, PRES & VP
COMPANY: SUBSTATION K, INC.
Tax Savings Report
Mark McCone (far left in picture), is an entrepreneur who took advantage of a spin off by Northwest Teleproductions, purchased, and became the majority owner of Substation K in 1993. His son and heir apparent, John McCone (middle of picture) purchased a minority interest in 1994. Under Mark and John’s guidance as President and Vice President, the company has grown each year and garnered many awards in the media production space.
Substation K (“SK”), based out of Kansas City, Missouri, has been a media production company for over 22 years. They are engaged in the video editing of commercials and have created many award winning commercials. The market they serve includes a wide range of clients such as: Walmart, Sonic, Dairy Queen, Missouri Lottery, Kansas Lottery, McDonald’s, Big O Tires, Science Diet, Blue Bunny Ice Cream, Belfonte Ice Cream, Quiznos, Yoplait, Hertz, Garmin, Price Chopper Groceries, Tops Groceries, Build-A- Bear and Hallmark Behind The Scenes.
Mark and John first started working with Ike in March of 2007. At the time, SK had sales in excess of $1,690,000 and Mark had a federal income tax bill in excess of $117,000. Beyond the bulging income tax liability, Mark wanted to set up other retirement plans that would just benefit him and his son. He engaged Ike to develop a comprehensive tax and financial plan with his business at the center of the plan.
What Ike was able to do was arm Mark with unique strategies to better protect the assets of his business from unsuspecting litigants, legally and ethically reduce his and John’s income taxes, and implement a legally discriminatory retirement plan that would create tax-free retirement income for him and John. The results for Mark were paying over $83,000 less in income taxes annually, experiencing increased cash flow annually, and having an account that’s projected to generate well over $70,000 in annual tax-free retirement income when he retires. For John, his results were paying over $13,000 less in income taxes annually and having an account that’s projected to generate well over $250,000 in annual tax-free retirement income when he retires.