Here 8 Ways USA Billionaires
Use to Avoid Paying Taxes
Unrealized Capital Gains Tax
Unrealized Capital Gains Tax
Most billionaires pay remarkably low taxes due to their wealth being tied up in assets rather than significant income
Charitable Deductions
Charitable Deductions
Wondering how Warren Buffett's tax rate is lower than his secretary's?
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He donates billions in Berkshire Hathaway stock to charity annually, utilizing charitable deductions on his taxes.
Long-Term Capital Gains Rates
Long-Term Capital Gains Rates
Billionaires primarily earn income through investments, including realized gains and dividends from stocks.
IRA Conversions
IRA Conversions
Peter Thiel's fascinating story involves turning a $2,000 investment into a $5 billion Roth IRA windfall.
Pass-Through Income Deduction
Pass-Through Income Deduction
The 2018 Tax Cuts and Jobs Act introduced a 20% deduction on pass-through income for those below certain income thresholds.
This applies to LLCs, partnerships, and even smaller businesses' ordinary and self-employment income.
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Mortgage Interest Deduction
Mortgage Interest Deduction
Homeowners enjoy tax benefits, like the mortgage interest deduction,
Essentially, this encourages homeownership by reducing borrowing costs for home purchases.
Real Estate Investment Benefits
Real Estate Investment Benefits
Real estate investments offer various tax advantages, including the significant depreciation deduction.
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