This is so much BS. Wealthy people slide their income into whole owned businesses. Those businesses use deductions to reduce their income in ways that you or I

This is so much BS. Wealthy people slide their income into whole owned businesses. Those businesses use deductions to reduce their income in ways that you or I can't. Simple example, to avoid paying income tax on $40,000 1. Create a business. 2. That business buys a car. 3. That business then leases the car to the business's owner 4. The owner as an independent contractor to the business deducts the 'cost' of leasing the car. 5. The business depreciates the car net the lease 'income'. Result: The cost of the new car is a tax deduction for the business. The business owner never has to take the $40,000 to go out and buy the car themselves. How about that fancy mansion? Also simple! 1. Have a separate LLC buy the house. 2. Host company events at the mansion. 3. The company pays a high fee for the privilege of hosting the CEO's Christmas party at the CEO's house. 4. All the CEO has to do is make sure to invite enough customers' CEOs to the event and it becomes an IRS approved business function.