1. Max out retirement process: The most common tax minimizes strategy is high net worth people in which all income levels have access to contribute the maximum amount of retirement accounts.
2. Use cost segregation studies to accelerate depreciation on assets: The income tax deduction will allow a taxpayer can recover the cost or other basis of property. The annual allowance for wear and tear, deterioration of the property.
3. Take advantage of major tax deductions for their business: Business owners may be section 179 of the tax code, which allow the company to deduct up to $500,000 in assets. Plus a measure called bonus depreciation allow only business owners to depreciate 50% cost of equipment purchase and used in applying 2017 to 40% cost in 2018 and 30% cost in 2019.
4. Donate stock to charitable organizations: The wealthy people have a significant amount of money also choose a donate of their stock to charitable organizations and avoid paying taxes on the stock gains.
5. Self-employed and deduct their health insurance: Usually, deduct the health insurance for individual self-employed and missing all the time.