Freeze! Don’t move! Trust freezing is a method one can use to mitigate taxes. Freezing the value of an asset excludes all asset appreciation and taxes. One can freeze their assets by trading common stock for preferred stock. They can then live off the dividends in the meantime.
Vacation for your wallet. Literally. Sending your money offshore to a country with lower taxes one of the more popular ways for people to avoid taxes. Did you know the Cayman Islands has more registered companies than people?
Options. Most options are only taxed when exercised, meaning accepting compensation in the form of options will be taxed when the options are exercised.
Shell games are played by shell companies. Not the oil distributor, but an essentially phony business that exists only on paper for the purpose of funneling money to avoid taxes.
Equity swaps allow two parties to exchange gain and loss of assets with no transfer of ownership. The swap avoids transaction costs and local taxes on dividends.
Capital gains taxes are taxes on the profits of the sale of stocks, bonds, property, or precious material. This can be avoided by purchasing stock options, then borrowing money from an investment bank with the stocks as collateral. When the loan is repaid, capital gains taxes are avoided.
Incorporating your own personal brand will allow you to modify the way your income is presented, reducing your taxes as a result.
Deffered compensation packages are popular options for allowing earnings to grow in a safe little tax-free bubble until you are ready to delve into it.
Charities are another way businesses fight to avoid taxes. Giving away money — up to $13,000 for charities or an unlimited amount for spouses — can be used as tax deductions.
Luxurious lifestyles are also tax deductible. Wait, what? Yep, owning multiple homes poses another option for tax reductions, and a yacht can even be listed as a second home… only as long as you’re willing to suffer at least two weeks a year on your yacht!
( all of this information was found from https://www.topaccountingdegrees.org/taxes/ )
