Los Angeles Tax Attorney Bruce Givner Discusses Strategies Used by High Wealth Individuals to Legitimately Decrease Their Taxes: Part 2

by Bruce Givner on June 28, 2012

There are several ways for high income earners to legitimately decrease taxes.  However, individuals of any income level should seek the advice of an experienced tax attorney to take advantage of tax rules that decrease his or her taxes,” expressed Los Angeles Tax Attorney Bruce Givner.

Selling Stock without Incurring Capital Gains Tax

You need cash.  “Instead of selling stock and incurring a capital gains tax, use the stock as collateral for a loan, which is not taxable,” explained Givner, whose income tax planning and asset protection plan practice covers Calabasas, Beverly Hills, and other areas of Los Angeles County.

Take Options, Not Just Stock

“If your employment package gives the option of taking stocks or stock options, choose stock options,” continued Tax Attorney Givner.  Gains from nonqualified stock options are not taxed until the stock option is exercised.  This allows the holder to incur any taxes owed at the most favorable time.

Convert a Traditional IRA to a Roth IRA

A traditional IRA allows contributions to be deducted from taxes, while distributions are taxed.  Roth IRA contributions are made from after-tax fund, while distributions are tax-free.  An experienced tax attorney can determine how converting your traditional IRA to a Roth IRA benefits you.

Givner & Kaye focuses on sophisticated estate planning and asset protection plans in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles County.  On the first and third Thursday of every month, Givner & Kaye hosts its MCLE & CE accredited series - "Thursday Insights."   On June 21st, join Givner & Kaye for insights into “The Five Most Common Business Frauds that Every Business Should Know.”  Call Los Angeles Tax Attorneys Givner & Kaye at (310) 207-8008 today.

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