08-10-2011, 04:51 AM
I believe that we received a significant tax break for investing in a manufacturing facility in a depressed area. So that might be an example of how to avoid some taxes.
According to our accountant we are very generous towards non-profit organizations. I take no pride in that at all as it indicates to me that others do not. I only bring it up to point out that is another way to reduce taxes.
Investments in 401k plans also reduce taxable income but is probably not a good example when focusing on the "rich" that seems to be the topic of this discussion.
I'm sure there are many other ways to reduce taxable income that are very legitimate, such as the ones I mentioned above. I think taxes on investments can bet pretty complicated can't they?
I would love to have more ways of course. :-)
According to our accountant we are very generous towards non-profit organizations. I take no pride in that at all as it indicates to me that others do not. I only bring it up to point out that is another way to reduce taxes.
Investments in 401k plans also reduce taxable income but is probably not a good example when focusing on the "rich" that seems to be the topic of this discussion.
I'm sure there are many other ways to reduce taxable income that are very legitimate, such as the ones I mentioned above. I think taxes on investments can bet pretty complicated can't they?
I would love to have more ways of course. :-)