How the Wealthy Save on Taxes

man-laying-in-money-[Converted]

 

Whether you make minimum wage or you’re in the richest 1 percent of earners, every taxpayer likes to keep as much of his or her hard-earned income as possible. There are hundreds of ways to save on taxes and many of these strategies are universal to all taxpayers no matter which tax bracket they fall into. However, there are certain tax-saving tricks that are particularly useful for the wealthy.

One of the most common methods many high net worth individuals use to save on taxes is by using tax-deferred retirement savings plans. Of course, anyone can start a retirement plan, but because the wealthy have more disposable income they can put away large sums of tax-deferred money, which provides a huge boost in the so-called golden years.

Another tax-saving strategy employed by the wealthy is to use offshore companies. By creating companies in foreign countries the wealthy can store more cash reserves away from the high tax rates in the U.S. Although many decry this practice, it is perfectly legal.

While a lot of people complain about the wealthy, the fact is, many of the nation’s top earners are also some of the nation’s biggest givers, as in charitable donations. Donating large sums of money to charity is a great way to help others, as well as save on taxes.

Lastly, the “carried interest” tax is another common strategy employed by the wealthy. This allows investors to save on taxes because they can pay 20 percent less on “carried interest” compared to normal income.

http://www.care2.com/causes/4-ways-the-rich-are-avoiding-paying-taxes-today.html
Posted in
Rajiv Parikh

Demand Acceleration | Rajiv Parikh

  About Rajiv Parikh Rajiv Parikh is the CEO of Position, an integrated digital marketing firm that drives brand visibility and new customer acquisition for technology-driven brands. Position² has operations in the US and Asia with clients from around the world. Their 200 person team combines advertising, marketing, product & technology expertise. The company is…

John Dutra; Balance in Life

Building Communities and Balance In Life | John Dutra

  About John Dutra John J. Dutra was appointed Chief Executive Officer in 2007. As CEO, he is committed to building on the company’s unrivaled reputation of partnering with local entities, political leaders, property owners and builders. John strongly believes in providing quality, personal integrity and a high level of service in all endeavors. From…

Gary Rogers

The Man Who Built Dreyer’s Grand Ice Cream | Gary Rogers

”You only get one trip around this track of life. There are no mulligans… let’s make it as good as it can be” – T. Gary Rogers About Gary Rogers T. Gary Rogers is the former Chairman of Safeway Inc., which he was instrumental in selling to Albertson’s in early 2015 for $10.4 billion. Previously…

The Art of Philanthropy | Tad Taube

The Art of Philanthropy | Tad Taube

Episode Transcript of: The Art of Philanthropy | Tad Taube   Alan Welcome back and visiting here today with Tad Taube. And welcome to today’s show. Tad Thank you. Alan So, Tad you’ve done a lot throughout your life. But I want to focus a little bit on, on today more that philanthropic causes that…