It’s tax time, so you’re probably wondering, man, do I really have to give the government so much of my money? If you’re rich, the answer is no! Step 1: Be a millionaire. Step 2: Hire a flashy accountant. Step 3: Have them use one of these 11 completely legal ways the wealthy use to avoid paying taxes. One of them, which Bloomberg Businessweek calls “The Friendly Partner,” allows for a property to be sold without any capital-gains tax at all.
How it works is that the two parties form a partnership. The guy with the property contributes it to the partnership and the buyer contributes his cash to the partnership. The cash and the property are now assets of the partnership. Then the partnership takes out a loan for just below the value of the property, using the property as collateral. Then the partnership distributes the cash loan to the original seller. Boom, the real estate is sold with zero capital-gains tax. Pretty savvy!
Remember, tax evasion is illegal. Tax avoidance, on the other hand, is the stuff of kings and heroes.
How To Pay No Taxes [Bloomberg Businessweek]