Top Tax-Saving Moves Used By High Net Worth Individuals
![Business,And,Finance,Vector,Illustration,Flat,Gradient,Design,Style,,Money Business,And,Finance,Vector,Illustration,Flat,Gradient,Design,Style,,Money](https://groco.com/wp-content/uploads/2016/04/shutterstock_1781910500-1024x744.jpg)
One of the biggest complaints certain groups or individuals have against the wealthy is that they can take advantage of too many tax breaks and loopholes to lower their tax bill. So what are some of the top tax strategies that high net worth individuals use to keep their tax rates down, and could anyone else use them?
One of the top tricks used by the wealthy is that they make the most out of their investment income. Compared to the top income bracket that is taxed at a 39.6 percent rate, capital gain income on stocks held longer than a year is taxed at a top rate of 20 percent, which is almost half of the top income tax rate. The good news is that anyone can take advantage of this rule.
Another tax strategy used by the wealthy is to use their retirement plan accounts to invest in high-growth start-ups before they hit it big. This can pay huge dividends because, if you use a Roth IRA for example, any gains you make from your initial investment are tax-free.
High net worth individuals also avoid getting paid in cash as much as possible. One example is taking stock options instead of huge salaries. A person who does this doesn’t have to report these stock options as income right away. When they do exercise or sell them they will have to report them but any gains in stock value are taxed at the capital gains rate.
While not everyone makes enough to capitalize on these strategies, those who can and do are able to save considerable amounts of money in taxes. Contact GROCO to learn more.
Simple Strategies for Avoiding an IRS Audit
Simple Strategies for Avoiding an IRS Audit sounds easy, but is it? Yes! Are you one of those individuals where the fear of an IRS audit keeps you awake at night? Well, you are not alone. It is one of life’s more complex fears. Never fun going into a room with someone that wants money…
Strategies for Representing Yourself in an IRS Audit
Strategies for Representing Yourself in an IRS Audit Have you been selected by the IRS for an audit? It’s OK. Relax; you can get through this. Although we advise you to never try to go through an audit by yourself, if you really like a challenge and would rather do it by yourself, there are…
U.S. Government Could Lose Billions Due to Fewer Audits
U.S. Government Could Lose Billions Due to Fewer Audits Taxpayers rejoice! There may actually be some good news about tax returns this year. The US Government could lose billions due to fewer audits. That’s because according to reports, due to reduced staff, the IRS may be forced to reduce the number of audits it would…
- « Previous
- 1
- …
- 470
- 471
- 472