Tax Saving Tips for the Rich

Tax Saving Tips for the Rich

When it comes to being rich, it can be a good thing when tax time comes around. Today, we are discussing some of the tax saving tips for the rich.

Mortgage Interest

The rich are able to take advantage of the mortgage interest deduction. While it is, true that middle class homeowners are also able to take advantage of this deduction it does not mean that it is in everyone’s best interest to own a home rather than rent one. Additionally, a study has shown that those who earn more than $250,000 are able to write off more than $5,000. Therefore, imagine how much those in higher income brackets can write off.

Capital Gains

Long-term capital gains are taxed at 15%. When you look at the numbers, you will see this is less than the 35% that ordinary wages are taxed at. It also shows that the rich are able to derive some of their income from capital gains allowing them to pay less than half of the tax rate on their income when compared to middle class income owners. Overall, capital gains are the way that the rich is able to stay rich.

Retirement Savings

Tax deferred retirement plans are for all Americans to save money for their retirement years. However, since the rich have to save more money they are able to benefit more by saving for their retirement years.

Bottom Line

If the rich want to stay rich, they have to make sure that they do something to save on their taxes. The three methods mentioned above will keep them from having to pay so much to Uncle Sam.

Tax season is in full swing! Give us a call at (425) 483-6600! We are a Seattle CPA firm!

 

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  • Huddleston Tax Accountants / Huddleston Tax CPAs – Redmond, WA
    Certified Public Accountants Focused on Small Business
    8201 164th Ave NE Suite 200 / Redmond WA 98052
    425-483-6600

    Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching,
    QuickBooks consulting, bookkeeping, payroll, offer in compromise debt relief, and business valuation services for small business.

    We serve Tukwila, Auburn, Federal Way. We have a few meeting locations. If you are looking for a Redmond CPA firm, get in touch with us! Call to meet John C. Huddleston, J.D., LL.M., CPA, Lance Hulbert, CPA, Grace Lee-Choi, CPA, Jennifer Zhou, CPA, or Jessica Chisholm, CPA. Member WSCPA.