A respected international tax planner in Miami, Suzanne DeWitt serves as principal of the consultancy Valora. One of Suzanne DeWitt’s areas of focus is on developing tax-efficient strategies for high-net-worth clients.
A recent CNBC article drew attention to the way in which high earners minimize taxes and decrease their effective tax rate in the United States. A core strategy involves defining income, assets, and investments within categories such as taxable, tax-free, and tax-deferred.
One major deduction pathway involves contributing money to nonprofits, with the amount that can be deducted having risen from 50 to 60 percent of adjusted gross income. A popular strategy involves setting up conservation easements that protect the natural environment while enabling a charitable deduction for the value of the land.
Equity exposure is another tax savings route. Provided that the stocks were held for a year or more, taxes on stock investment gains enjoy a significantly lower rate than wage income. With federal tax brackets assessed on wages reaching as high as 37 percent, those placed on long-term capital gains max out at 20 percent. Other complementary strategies include placing money in long-term trusts that offer estate and gift exemption advantages.
