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Clay Erickson is an award-winning financial professional based in Utah who has served various companies in the financial sector for over 30 years. He is currently an advisor at the Wealth Innovation Group, but began his career in 1984 as a senior investment officer with a major national banking institution, and has spoken at numerous seminars on various financial topics. Some of the areas Clay Erickson focuses on include retirement planning, safe money investing, and tax reduction strategies.
Tax cannot be avoided, but it is possible to come up with smart and creative ways to reduce tax burdens. Below are some of the ways wealthy people reduce their tax obligations.
1. Wealthy individuals work towards boosting their equity investments and managing gains. For instance, they invest in stocks when selling time approaches, as taxes are usually lower compared to the tax rates on wage income.
2. Giving back to society through charitable donations helps to reduce one’s tax bill. Donating items such as books, clothes, and toys to support the needy is classified as volunteer work, which can be leveraged as a tax benefit.
3. Many wealthy individuals own their own businesses, which provides more tools to minimize taxation. Business owners have an opportunity to work closely with financial planners, CPAs, or bookkeepers to ensure every tax-saving opportunity is identified. Tax breaks and larger retirement contributions available only to business owners can help to lower taxes.
4. Multiple assets are managed using a well-defined formal structure such as a limited liability company (or LLC). If an LLC is a management company that provides oversight and advice to business owners, some business expenses incurred by the LLC may be deductible.
Tax cannot be avoided, but it is possible to come up with smart and creative ways to reduce tax burdens. Below are some of the ways wealthy people reduce their tax obligations.
1. Wealthy individuals work towards boosting their equity investments and managing gains. For instance, they invest in stocks when selling time approaches, as taxes are usually lower compared to the tax rates on wage income.
2. Giving back to society through charitable donations helps to reduce one’s tax bill. Donating items such as books, clothes, and toys to support the needy is classified as volunteer work, which can be leveraged as a tax benefit.
3. Many wealthy individuals own their own businesses, which provides more tools to minimize taxation. Business owners have an opportunity to work closely with financial planners, CPAs, or bookkeepers to ensure every tax-saving opportunity is identified. Tax breaks and larger retirement contributions available only to business owners can help to lower taxes.
4. Multiple assets are managed using a well-defined formal structure such as a limited liability company (or LLC). If an LLC is a management company that provides oversight and advice to business owners, some business expenses incurred by the LLC may be deductible.
