Is there a way to pay nothing in taxes or pay less legally? Can you guys tell me more on this topic on how to pay less in taxes? How do entrepreneurs escape taxes legally?
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2I feel like "how did Trump pay almost nothing" and "is there a way to pay nothing/pay less" are different questions.– D MCommented Dec 2, 2020 at 11:32
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2This question will probably be closed for a few reasons. Asking for book recommendations is off-topic, and if you remove that request, the rest of your question is probably too broad. Here is a question somewhat similar to yours that you might enjoy. And this question about a popular book addresses another part of your question, but make sure you read the warnings in the answers.– Ben MillerCommented Dec 2, 2020 at 12:18
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Not necessarily legal..... nytimes.com/2020/11/19/nyregion/…– yoozer8Commented Dec 2, 2020 at 13:36
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1 Answer
There are really only a few ways to legally pay less taxes:
Earn less money (obviously)
Take legal tax breaks such as 401k contributions, donate to non-profits, etc.
Lose money (in the case of Trump, a LOT of money) running your business.
Trump specifically paid very little in taxes because he wrote off so much as "business expense" (plenty of other articles discuss this).
One should note that in order to claim a business expense, you have to spend money (much like donating to a non-profit). There is no legal way to magically "pay less". If you claim $100 in expenses, sure you don't have to pay taxes on that, but you have still spent $100.
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4And in Trump’s case specifically, he had so much in business losses that it offset just about all of his income. So point #3 might be “Lose a lot of money.” Commented Dec 2, 2020 at 14:58
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@Ben Miller - Remember Monica: Though using Trump's activities as examples is perhaps not a good idea if you are looking for LEGAL ways to avoid taxes.– jamesqfCommented Dec 2, 2020 at 17:30
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