To hedge against raising tax rates, it can make sense to take a few plays from the ultra-wealthy playbook. Here are the top tricks the rich use to pay less in taxes.
Structured properly, some real estate deals allow for more depreciation than the property even generates in income, basically sheltering all of the property’s income from taxation.
The wealthy often sock money away into tax-protected accounts like Roth IRAs, 401(k)s/profit-sharing plans, defined benefit/cash balance plans, 529s, and health savings accounts.