Which Tax Breaks Help High Net Worth Taxpayers the Most?

7 Leadership Traits

It’s no secret that the United States government generally taxes high net worth individuals at a much higher clip than those in the lower- and middle-income brackets. However, despite that fact, there are still many provisions in the tax system, if used properly, can help wealthy earners save on their taxes. So what are some of the best breaks afforded to the wealthy?

High net worth individuals use several tax breaks to ease their tax burden, and most of them use the skill and experience of a trusted accounting firm to help them maximize the tax breaks available to them. For example, the wealthy often save a bundle on taxes because tax rates are smaller for qualified dividend income and long-term capital gains. In fact the capital gains tax is probably the biggest break the wealthy employ.

Another big tax break the wealthy receive is the “wage cap” on Social Security payroll tax. The government automatically deducts 6.2 percent from employees’ paychecks, but that is only applied to the first $118,500 someone earns. After that the wealthy don’t pay any more payroll taxes.

Lastly, the estate tax offers another way for the wealthy to reduce their tax bills. That’s because the lifetime exclusion has risen from $2 million in 2008 to $5.45 million currently. In addition, heirs will now also receive a step-up in basis on the assets they inherit.

So, while the nations’ wealthiest individuals do pay more in taxes than everyone else, there are some nice tax breaks available to them that can at least help reduce their bill. Contact GROCO to learn how we can help you hold onto more of your wealth. Call 1-877-CPA-2006.

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To receive our free newsletter, contact us here. Subscribe our YouTube Channel for more updates. Alan Olsen, CPA Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world. Alan L. Olsen, CPA, Wikipedia Bio GROCO.com is a proud sponsor of The American Dreams Show. American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business. Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind. The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most. They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more.. American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included: Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work… Untitled_Artwork copy 4 MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement: In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges. Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

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