Top Ten Ways the Rich Avoid Higher Taxes

Bloomberg listed the top ten ways that the rich avoid higher tax rates:

1. The “no sale” sale: a way to cash in on stocks while avoiding capital-gains taxes

2. The skyscraper shuffle: Partnerships that will let property owners liquidate without liability

3. Estate tax eliminator: Leaving future stock earnings to children while escaping the tax

4. The trust freeze: If you freeze the value of an estate, the taxes won’t eat up the future appreciation

5. The option option: Using stock options to calibrate compensation taxes

6. The bountiful loss: Using underwater stock shares to adjust the tax bill

7. The friendly Partner: Investors who sell property without actually selling

8. The Big Payback: Permanent life insurance policies

9. IRA Monte Carlo: Converting to a Roth IR

10. The Venti: Putting part of your paycheck into a deferred compensation plan

See Jesse Drucker, How To Pay No Taxes: 10 Strategies Used By the Rich, Bloomberg Business Week, Apr. 17, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.