Avoid Taxes

Ten Most Common Legal ways to Avoid Taxes in 2015
Its tax time again, if you’re one of 1% of Americans who control over 40% of the country’s wealth, you’re going to want to hold onto your money and not give it away to the government
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I have researched and have come across several loopholes in which actually may benefit you. So how do the really super rich hide their money from the government? Well here are ten common legal ways to avoid paying taxes in 2015.

tax avoid

  • You could equity swap, which permits two individuals to switch the gain and loss of assets without essentially transferring ownership. By switching your assets around it will avoid a transaction fee, and local taxes on dividends.
  • Use your money for luxurious items such as, a second home, a yacht, or even a motor home. If you spend at least two weeks in your motor home or on your yacht you could claim them as a second home during tax time. You could actually have a second home and rent it out, but only up to two weeks a year, for tax free income.
  • If you want to transfer some of your valuable assets to your family, such as your children. Then you should consider a trust freeze which will avoid them having to pay federal taxes. Another alternative is to put your preferred stock in a trust and live off the dividends.
  • Give some cash money away to family members as a gift, including your spouse. Your gift can be as high as 13,000 dollars without having to pay taxes on it. This allows you to circulate your cash through your family unit. Another way is to give a cash donation to your favorite charity event, and feel good about it, while avoiding paying taxes on it.
  • Register your business or put your money in an account in another country with a lower tax rate. The most popular place these days is the Cayman Islands.
  • One way to avoid capital gain is after you purchase a non-inventory asset such as stock, borrow money from an investment bank. Then pay the loan back, using the currency you made off the money you borrowed or by handing over the stock shares.
  • Open a company that technically only exits on paper, making it available for you to funnel money through it, with very little products, if any. This typically is done when there is a lot of buying and selling to avoid taxes.
  • Another option you could do is defer part of your pay into a compensation plan. This permits your earnings to keep on increasing, tax deferred for 10 years or more.
  • By taking a portion of your benefit in a stock option, you can decide when and if you pay taxes and are only taxed when exercised.
  • To avoid being in a higher tax bracket, you could incorporating your own personal brand. Which in turn will allow you to channel wages through a nominal corporation.