3 tax secrets of the rich you can use, too

The wealthy have access to tax breaks that most Americans will probably never enjoy. But that doesn't mean we can't take a few tricks out of their playbook.

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282Comments
Feb 10, 2014 9:52AM
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Well at least the rich are paying their own way. If someone else is rich that does not bother me. What does bother me is generational welfare. It seems that the ones that are bothered the most about folks taking legal tax deductions are those living off the government. This growing group is worried that if the government is shorted then those living off it can not live up to the standard they are used to.

The three fixes for those on the dole are: 1. don't have kids you can't afford to raise; 2. educate yourself; 3. get a job.

There, now everyone has the road map to success and we can now concentrate on the Olympics.

Feb 10, 2014 12:55PM
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LETTERMAN’S TOP 10 REASONS TO VOTE DEMOCRAT


 
#10. I vote Democrat because I love the fact that I can now marry
whatever I want. I’ve decided to marry my German Shepherd.
 
#9. I vote Democrat because I believe oil companies' profits of 4% on
a gallon of gas are obscene, but the government taxing the same gallon
at 15% isn’t.
 
#8. I vote Democrat because I believe the government will do a better
job of spending the money I earn than I would.
 
#7. I vote Democrat because Freedom of Speech is fine as long as
nobody is offended by it.
 
#6. I vote Democrat because I'm way too irresponsible to own a gun,
and I know that my local police are all I need to protect me from
murderers and thieves. I am also thankful that we have a 911 service
that get police to your home in order to identify your body after a
home invasion.
 
#5. I vote Democrat because I'm not concerned about millions of
babies being aborted so long as we keep all death row inmates alive
and comfy.
 
#4. I vote Democrat because I think illegal aliens have a right to
free health care, education, and Social Security benefits, and we
should take away Social Security from those who paid into it.
 
#3. I vote Democrat because I believe that businesses should not be
allowed to make profits for themselves. They need to break even and
give the rest away to the government for redistribution as the
Democrat Party sees fit.
 
#2. I vote Democrat because I believe liberal judges need to rewrite
the Constitution every few days to suit fringe kooks who would never
get their agendas past the voters.
 
…And the #1 reason I vote Democrat is because I think it's better to
pay $billions$ for oil to people who hate us, but not drill our own
because it might upset some endangered beetle, gopher or fish here in
America. We don't care about the beetles, gophers or fish in those
other countries.
Feb 10, 2014 12:56PM
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LBJ:
We were attacked (in the Gulf of Tonkin)
 
Nixon:
I am not a crook
 
GHW Bush:
Read my lips - No new taxes
 
Clinton:
I did not have sex with that woman... Miss Lewinski
 
GW Bush:
Iraq has weapons of mass destruction
 
Obama:
I will have the most transparent administration in history.
The stimulus will fund shovel-ready jobs.
I am focused like a laser on creating jobs.
The IRS is not targeting anyone.
It was a spontaneous riot about a movie.
If I had a son.....
I will put an end to the type of politics that "breeds division, conflict and cynicism".
You didn't build that!
I will restore trust in Government.
The Cambridge cops acted stupidly.
The public will have 5 days to look at every bill that lands on my desk
It's not my red line - it is the world's red line.
Whistle blowers will be protected in my administration.
We got back every dime we used to rescue the banks and auto companies, with interest. 
I am not spying on American citizens.
ObamaCare will be good for America 
You can keep your family doctor.
Premiums will be lowered by $2500.
If you like it, you can keep your current healthcare plan
It's just like shopping at Amazon
I knew nothing about "Fast and Furious" gun-running to Mexican drug cartels
I knew nothing about IRS targeting conservative groups
I knew nothing about what happened in Benghazi
I have never seen my Uncle from Kenya who is in the country illegally and that was arrested and told to leave the country over 20 years ago
And, I have never lived with that uncle. (He finally admitted today, [12-05-2013] that he DID know his uncle and that he DID live with him.)
 
And the biggest one of all:
"I, Barrack Hussein Obama, pledge to preserve, protect and defend the Constitution of the United States of America."
Feb 10, 2014 12:58PM
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In the 2004 Illinois Democrat primary race for the U.S. Senate, front-runner Blair Hull just happened to be forced out of the race after David Axelrod just happened to manage to get Hull’s sealed divorce records unsealed, which just happened to enable Obama to win the primary, so he could face popular Republican Jack Ryan, whose sealed child custody records from his divorce just happened to become unsealed, forcing Ryan to withdraw from the race, which just happened to enable the unqualified Obama to waltz into the U.S. Senate, where, after a mere 143 days of work, he just happened to decide he was qualified to run for President of the United States.
 
“Tolerance is the last virtue of a dying society.” –Aristotle
Feb 10, 2014 10:30AM
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If I were rich I would hide as much of my money from the current socialist government as I possibly could.
Feb 23, 2014 5:04PM
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What a load of crap this article is.  I'm a tax advisor, and let me just clear something up... there are no "tax breaks for the rich"  There is not a single tax deduction that kicks in when your income is a certain level or higher.  However, personal exemptions, itemized deductions, student loans, tuition expense, Ira deductions, and just about any other credit  or deduction you can find is reduced or eliminated for the highest tax brackets.


Notice that the author says something like "this rich probably have access to break the rest of us will never enjoy" ... yet the article  doesn't mention any.  the reason?  there aren't any!


True, one of the great ways to transfer wealth is thru handing down real estate... but these rule apply to anyone, not just the rich.  the only other area I know of that tends to benefit wealthy people is that  some private equity funds get taxed at a lower rate than the normal marginal income tax rates.  However, you are talking about a miniscule fraction of people in the highest tax bracket that run a private equity fund.

Feb 10, 2014 12:54PM
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DO NOT CHEAT ON YOUR TAXES!!!!!           YOUR GOVERNMENT NEEDS ALL OF YOUR MONEY!!!!

IT HAS SO MANY MOUTHS TO FEED!!!!   AND BUY CELL PHONES FOR!!!   AND POT TO SUPPLY!!!!

AND GUNS FOR POOR MEXICAN DRUG DEALERS!!!!     AND COFFINS TO BUY FOR OUR FOREIGN AMBASSADORS!!!!!       DON'T FORGET THE AD CAMPAIGN FOR OBAMACARE!!!!!!!

HEAVEN FORBID NOT PAYING CGI FOR THEIR TIRELESS EFFORT TO GET YOU ALL SIGNED UP FOR OBAMACARE!!!!!

AND SIMPLY JUST TOO MANY OTHER THINGS TO MENTION!!!!!
--------------------?--------------------?--------------------?--------------------?-----------------


THE ONLY LEGACY OBAMA HAS CREATED FOR HIMSELF AS OF TODAY
IS:

HE HAS BROUGHT NEW DEFINITION DESCRIPTIONS TO THE WORD FAILURE!!!!!


Feb 9, 2014 11:46AM
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The biggest "secret" is not to live above your level of income. 

 

I'm surprised that this article did not list that divdends from common stock investments are only taxed at a maximum of 15% except for the very high income persons.  Anyone can get in on this break by just saving some of their income and investing it in mutual funds that hold dividend paying common stocks like Exxon, Chevron, Coca Cola and Pepsico. 

Feb 10, 2014 1:02PM
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AMERICA - - -  YOU REALLY ARE AN IGNORANT LOT!!!!!!!!!!!!!!!!!?

BECOMING MORE OF A THIRD WORLD COUNTRY EVERY DAY!!!!!!!!!!!!!!

LED BY LIARS, AND JUDASES.  CORRALED BY THE LYING MEDIA.

LIKE SHEEP HEADED FOR SLAUGHTER!!!!!


Feb 10, 2014 10:54AM
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Absolutely worthless article.  All people have access to 401K or IRA accounts and they have now for decades. Most people don't inherit enough money to even have to pay any taxes. Donating stuff doesn't provide a significant write off at all.  This article must have been written by Obama himself or some other liberal fool.
Feb 7, 2014 9:18PM
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Most of the tax breaks are gone now for the average worker, taken away by the squirrels in DC... Now Obama-Care has placed penalties on retired people collecting money from their 401's and other savings and plans over a certain amount.....makes you pay more for your Medicare and prescription meds on insurance premiums. Nothing right about this and it is a new tax for people who have saved money over a lifetime for retirement and now the lying, laughing POTUS wants a deeper cut of that.....
Feb 23, 2014 5:20PM
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One tax secret of the wealthy and powerful.  Run for public office even on the state level, promise the world, get in and then vote yourself a 62% pay raise to bring  in about 53,000 yearly for a two month job.  That leaves you most of the year to work another job or to think of other ways you can swindle the taxpayers.  Then, be even greedier.  Pass legislation on yourself allowing you to hide about 4100 dollars monthly into an "expense" account and avoid taxes on about 92% of your state salary.  No, not in America!  This doesn't really happen, does it?  In what state? If anyone else, without the power to vote it legal,  invented ways to avoid taxation, would they not be accused of iax fraud or laundering money?  Has this really happened?
Feb 10, 2014 1:54PM
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so why are we told about the rich not paying their fair share if they are "getting around" taxes by differing them, or by donating lots of money/items?  And getting around taxes via estate planning should be unnecessary.  why am i taxed when i earn money, spend money, invest money, and again on anything i have left over when i die? (assuming the minimum of course)
Feb 23, 2014 6:47PM
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So if someone lives way above their means, big house they can hardly afford, 60" flat screen TV, new cars, boat, motorcycle, camper, and everything is on payments I'm suppose to fell sorry for them? I've worked hard all my life, saved my money, drove used trucks until the wheels fell off, invested my money in rentals and land. I would lay in bed half the night thinking of other ways to make money, NOT spend it. When it came time at the end of the year and I'd think back how I had worked 7 days a week, didn't spend every weekend night in a bar spending my money on booze, driving a fancy new truck or watching the "game" on Sunday. Yea I'd do every trick in the book to keep MY money in MY pocket!! Funny how I'm greedy for wanting to keep my money, but, it is not greedy for someone else to want to take MY money!
Feb 23, 2014 4:39PM
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Most big tax breaks come at a hefty price.  Most people don't seem to grasp that concept.  If you donate millions to a charitable organization it lowers your taxable income but that money is gone forever (from the donor).  Other types of tax deductions come in the form of things like depreciation of an asset.  That asset might be a building, airplane, etc - some capital equipment that the beneficiary has to purchase to begin with.  You still may have shell out big bucks to maintain it - while providing jobs to do so.  You don't get more in tax breaks by investing as such - you get some offsets to encourage that investment. 
Feb 23, 2014 4:30PM
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Not sure you'll save 1,000's on your taxes by cleaning out your closet.  Remember the fair market value of your used clothing is next-to-nothing.  See what it's selling for at your local Goodwill store.


A far better idea is to donate highly appreciated stock to the charity.  You avoid capital gains since you didn't sell it and the charity doesn't pay taxes so they avoid the capital gains when they sell it.

Feb 23, 2014 7:15PM
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I am  not rich but I use all three of these. .Just FYI for the author , the average person making more than 250K pays 29% tax, the average person under 250K pays 19%. And then there Is the fact 47% of people pay nothing.

Obama is now proposing a new retirement tax on successful people (notice I did not say rich people). so what message are we sending to Americans? Being a government employee is the only way to retire young and have your way paid to the grave.

 Socialism has never worked but it appears we are on our way.

Feb 7, 2014 10:21PM
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With Obamacare, this Administration thinks everyone but the top 1% has to pay their fair share of taxes and penalties under the Affordable Care Act. Has anyone notice that even people who do not work have to pay taxes now? No one left behind is the motto for Obamacare. Why it is in the Affordable Care Act along with the one size fits all Americans but at a higher price. Do you think you are getting cheated here? You better believe it. Why do seniors have to pay more taxes than other people.? It is like this Federal Government wants a bite out of Social security. Social Security and Medicare are not entitlement programs and this and past Presidential Governments have borrowed money that has never been repaid for other programs with the promise that it would be repaid by the time the first baby boomers start getting their Social Security. Yeah right. Social Security was not designed for the US government to dip their greedy hands into. All they saw was this huge pool of cash that belong to baby boomers from hard labor.  Now this President wants all seniors to have nothing. You know what? One day soon this President will turn the age where he will collect his Social Security. The Social security Administration will send him a Dear Barack letter saying he has no money in his account or not enough fund are in the account, but we might scrape you up a $.50 and you can qualify for Medicaid and  Snap benefits. Then he will be lucky to get a whole $1.00. Kill the tax theme associated with Obamacare. 
Feb 23, 2014 8:35PM
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Since there isn't a flat tax the current system is UNFAIR...plain and simple. How dare you penalize someone for their hard work.
Feb 7, 2014 10:46PM
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High income over 204k, the SEP IRA and the Solo 401k don't have identical tax savings. Depending on the state you live, the Solo 401k is deductible whereas the SEP isn't. NJ the Solo 401k would save you around 4k. 


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