Скачать или смотреть 7 Ways Billionaires Avoid Tax On A Massive Scale - How Money Works

We create videos on financial education, investing, personal finance, business knowledge, and how to become smarter financially
-----------------------------------------------------------------------------------------------------
7 Ways Billionaires Avoid Tax On A Massive Scale - How Money Works

In 2007, Jeff Bezos, then a multi-billionaire and former world’s richest man, did not pay a penny in federal income taxes. He achieved the feat again in 2011. In 2018, Tesla founder Elon Musk, now the richest person in the world, also paid no federal income taxes.
Michael Bloomberg managed to do the same in recent years. Billionaire investor Carl Icahn did it twice, while George Soros paid no federal income tax three years in a row.
Well, here are 7 ways the rich skip on paying taxes.
1. Put It In the Freezer
Trust Freezing is a way to transfer valuable assets to others (such as your children) while avoiding federal estate tax. The strategy is not so complex. The rich simply free the value of assets many years before they plan to pass them on to exclude all asset appreciation from the estate, and any taxes. In the business world, one of the most common methods is to trade common stocks for preferred stocks. Selling common stocks for money will incur a large amount of capital gains tax, but trading your common stock for preferred stock, excludes you from that obligation. The next step is to put some of the preferred stock in a trust and live off the dividends.
2. Charitable donations
Money donated to charity is not taxable!
This is why every wealthy individual owns a foundation of sorts.
Giving money to non-profit organizations has long been a way for the wealthy to get a deduction on their taxes. And under the new tax law, the amount you can deduct has increased — to 60 percent of your adjusted gross income, up from 50 percent.
3. Managing assets like a business
One way the rich save on taxes is creating a structure — such as a limited liability company, or LLC — to manage multiple investments. It could include portfolio assets, real estate or a business.
While it could get complex, there are many opportunities to save money while at the same time creating a governance structure for their assets. If the LLC is a management company that provides oversight and advice to owners of the assets, under certain circumstances the expenses incurred by the LLC will be deductible as business expenses.
4. Send it Overseas
If you're up to date with the news, then you must have heard of the Pandora Papers. This was 11.9 million leaked documents with 2.9 terabytes of data from 14 companies in offshore tax havens unmasking the hidden owners of offshore companies, secret bank accounts, private jets, yachts, mansions and artworks by Picasso and Banksy. It exposed the secret wealth and dealings of world leaders, politicians, and billionaires. Preceding that was the Panama Papers which exposed financial and attorney-client details of over 214,488 offshore entities which were created by Panamanian law firm Mossack Fonseca in order to evade taxes.
5. Asset-backed Lending
In 2021, Billionaire hedge fund manager Alan Howard paid $59 million for a Manhattan townhouse in March. Just two months later he obtained a $30 million mortgage from Citigroup Inc.
Same year, Denis Sverdlov, worth $6.1 billion thanks to his shares in electric-vehicle maker Arrival, pledged part of that stake for a line of credit from the same bank. For Edgar and Clarissa Bronfman the loan collateral is paintings by Damien Hirst and Diego Rivera, among others. Philippe Laffont, meanwhile, pledged stakes in a dozen funds at his Coatue Management for a credit line at JPMorgan Chase & Co.
6. They choose whole-life insurance
Another strategy that's especially beneficial for wealthy taxpayers is purchasing whole-life insurance, which lasts, unsurprisingly, for the policyholder's whole life. It also has an investment component, which is why it makes the list.
Note that many financial planners do not recommend whole-life insurance for the typical person. Instead, many experts prefer term-life insurance, which does not have an investment component and covers a policyholder for a set amount of time — for instance, 30 years until their dependent children are grown and self-supporting.
7. Buying Art
The art trade is getting more media attention as more people come to realize the how shady the market truly is. This is not surprisingly as it is the last major unregulated market. This makes it a great place for the rich to escape the grip of the taxman.
-----------------------------------------------------------------------------------------------------------

#Finance #Business #investing

#Money #personalfinance #investingforbeginners #howtoinvestinstocks #howmoneyworks

Thanks For Watching Our Videos 🤗
Please, like, comment, subscribe, and ring the bell! EVERYTHING helps us grow!. 🙏