Protect Your Wealth Like Trump: Trump’s Top 5 or 6 Wealth Protection Strategies

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If you want to enjoy the wealth of people like Donald Trump ask yourself this question… “What are they doing that I am not?

First and foremost, it’s understanding the income tax system. It’s knowing how to deploy the money you earn using the tax laws of America in the most selfish way possible.

Here are just a few tax strategies we believe Trump has taken advantage of.

Strategy #1: Hire Your Children

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It’s not know what Trump’s children earn, but paying them salaries, high salaries is another Trump personally can reduce his taxes.

By doing this he moves money from his taxable income to his children.

One would suspect, that his children are employing similar tax tactics as their father to shelter their income.

 

Strategy #2: Depreciation

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Tax laws allow those who have full time careers in real estate to take deductions for investment real estate. Quite simply, the government says that a building you buy for investment purposes is going to fall down and be worthless in 30 years.

Because you are in the business of real estate, and that the investment you made in real estate is going to be worthless in 30 years, the government says you can subtract the value of the building from your taxes a little bit each year.

You are “depreciating” the value of the building on your tax return and taking a deduction for those “imaginary” losses that will occur.

 

 

Strategy #3: Dynasty Trust

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If you want to eliminate the Federal Government control and estate taxing power of your wealth, you set up a Dynasty Trust. South Dakota is one state where you can put assets inside the trust, and those assets become untouchable by the Federal Government for estate taxes purposes.

Millionaires and billionaires can keep and control vast amounts of wealth outside of the reach of the Federal Government for estate tax purposes with a Dynasty Trust. It would not be out of the question that Donald has set up such a tax device for his grandchildren to provide and protect his wealth from the Federal Government.

 

Strategy #4: Stock for Debt Swap

It’s been all over the news that Trump has avoided income taxes on hundreds of billions of dollars. In researching how that might be possible, Trump may have set up a shell company where the losses on property created by debt flowed through to his personal tax return.

By selling the debt of a failed company he owns to another one of his companies, these losses may have been able to shelter his income for years using a flow through S Corporation.

Strategy #5: Lease Back Corporations

trump-jetTrump owns planes, helicopters, vehicles, and at one time a yacht. In his financials filed to become president, you can see where he has set up various transportation companies. By doing this, he can buy these planes, and vehicles, and take a tax deduction in some cases for the entire purchase with certain limitations.

Other large purchases like the Trump jet we see him flying in are probably depreciated just like his real estate. This allows him to take business deductions for the value of the plane every year for at least 5 years. By setting up lease back corporations, Trump can rent any of these vehicles or planes to others.

He can provide them for customer use, or even fly his high rollers on the 100 million dollar Trump jet. It’s all business expense and deductions.

 

 

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