Ways the ultra-rich legally avoid paying taxes
Revelations of Donald Trump’s 1995 tax returns probably shocked the majority of the U.S. tax-paying population but for the mega-rich, similar strategies of legally avoiding their ‘responsibilities’ to the IRS are just old news. In fact, the ultra-wealthy families follow a standard and fail-proof way to go tax-free by either having a top-notched understanding of the U.S. tax laws or by simply hiring an expert wealth manager to find loopholes in the tax code . So what are the ways that the ultra-rich do to legally avoid paying taxes? 1. Declaring income The super wealthy population is proficient at convincingly declaring their lowest possible taxable income and other applicable tax rates. How? By paying themselves reasonably lower salaries and placing a bigger portion of their income in the form of dividends. 2. Strategic borrowing It’s legally possible to employ borrowing tactics to earn money and at the same time, avoid capital gains. For instance, rich peo...