Some of the loopholes involved,the ways they write off things,ect
2007-09-21 09:24:12 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Biggest loophole would be investing in tax exempt municipal securities. If they own municipal securities of the state that they live in, then the interest from those would be exempt both state and federally. The only thing they'd have to look out for would be Alt-Min tax, which is supposed to catch the rich and make sure that they do pay taxes.
2007-09-21 09:36:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I suppose if I had an extra million or so that I was going to suffer a huge 400,000 tax ding at the end of the year, I would donate a lot of it to a charity under certain terms. The charity would then take 100% of the proceeds I donated to them, and purchase an annuity where the dividends are paid to me, however, since it's a life insurance product, the death beneficiary would be the charity. So, win win for both of us.
That would be a nice problem to have.
2007-09-21 18:26:30 · answer #2 · answered by Sinnary 2 · 0⤊ 0⤋
The best way to legally avoid taxes income tax is to avoid income. Your goal should be to maximize after tax income. The best way to do that involves earning more money.
2007-09-21 19:54:09 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
The so called loopholes for the rich are available for everyone, if they choose to use them.
2007-09-21 17:55:30 · answer #4 · answered by justin c 2 · 1⤊ 0⤋
Tax shelters (401k, IRA), giving money or goods to qualified charities (write off), using things for business purposes and personal purposes (i.e. home office). This is a good article on it: http://articles.moneycentral.msn.com/Taxes/TaxShelters/TheUltimateTaxShelterYourOwnBusiness.aspx
2007-09-21 16:35:09 · answer #5 · answered by HRGal 3 · 0⤊ 0⤋
if you're not paying taxes it's not legal and you can't invent things to write off
2007-09-21 19:44:14 · answer #6 · answered by Anonymous · 0⤊ 0⤋