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Costing more than $160,000, G-Wagons are hardly what near people would retrieve of as a deal — but for the wealthy, these luxury SUVs are rolling tax loopholes.

The and then-chosen "Hummer Deduction," Section 179, allows a car that weighs at least six,000 pounds to count as a revenue enhancement benefit in some circumstances. Snap information technology up via your company, use it for business at least half the time, and that Mercedes G-class — or Cadillac Escalade (starting at $76K) or Infinity QX80 (from $70,000) — could earn a $25,000 deduction the first twelvemonth of ownership.

The IRS treats such rides equally depreciating avails, assuasive for the offset, though the benefit wasn't originally intended to help out high rollers, according to Scot Hall of Swapalease.com. Information technology was actually meant for subcontract equipment like tractors; as our cars have gotten heavier, the tax lawmaking has failed to keep upward.

"It'southward a provision to incentivize businesses to purchase new equipment," Hall told The Postal service,"The college the vehicle weight, the more than likely information technology is to be a heavy-duty pickup. These days, though, in that location are more than vehicles than people think that sneak upwards to qualify."

The "Hummer Deduction," Section 179, allows a car that weighs at least 6,000 pounds — such as a Cadillac Escalade (above) — to count as a tax benefit in some circumstances. — The "Hummer Deduction," Section 179, allows a machine that weighs at least 6,000 pounds — such as a Cadillac Escalade (higher up) — to count every bit a tax benefit in some circumstances.

The "Hummer Deduction" isn't the only 100 per centum legal workaround that wealthy Americans apply to offset their upscale lifestyles against Uncle Sam'southward bottom line, according to Asher Rubinstein, a partner at NYC-based Gallet Dreyer & Berkey and a seasoned pro in asset protection tax practice.

Take the "Augusta Dominion," its name a nod to the Georgia boondocks where homeowners have long rented out their mansions during the PGA'due south bound Masters tournament there.

In the 1970s, residents lobbied the Feds to allow them to do that for a cursory period every year without operating as rental businesses — or paying taxes on what they charged. Now anyone who owns multiple estates tin can rent out their primary residence at market charge per unit for up to 14 days a twelvemonth and bank the profits tax-gratuitous.

The "Augusta Rule," named for the Georgia city that hosts a PGA Masters tournament (above), lets estate owners rent out their primary residence at market rate for up to 14 days a year and bank the profits tax-free. — The "Augusta Dominion," named for the Georgia metropolis that hosts a PGA Masters tournament (above), lets manor owners rent out their primary residence at market rate for up to 14 days a yr and bank the profits revenue enhancement-gratis.

There's another loophole — the 1-percent equivalent of farthermost couponing, that can be stacked on top of that, per Rubinstein.

"Rent [your dwelling] out to your business for a corporate retreat or monthly lath of directors meeting, and now the rental payment is deductible to the business, and income-tax free to you lot," he said. "It'south like a bonus on both ends."

Another temporary bonus Rubinstein encourages anybody to recognize right this tax season: Concern meals, which were traditionally 50 percent deductible, can now be fully counted off — a government gesture to try to juice pandemic-hobbled restaurant checks.

Business meals, including pricey ones at places like Le Bernardin (above), where a chef's tasting menu can cost up to $440, can now be fully counted off — a government gesture to try to juice pandemic-hobbled restaurant checks. — Business meals, including pricey ones at places similar Le Bernardin (higher up), where a chef's tasting card can toll upward to $440, can now be fully counted off — a authorities gesture to try to juice pandemic-hobbled eating house checks.

"This was a lifeline Congress threw the restaurant manufacture," he said of the measure that expires at yr's end. It ways that even start growth Bordeaux and a four-course prix fixe at Daniel qualifies, as long as the coming together-and-eating was business-related.

Got a closet full of Birkins or a couple of prized Picassos? There's a tax workaround for that, as well. You tin establish your own family 501 (c)(3), then donate the luxury goods to that new foundation. The donation earns a taxation deduction, and the foundation doesn't pay tax when information technology sells the appurtenances.

Rubinstein has set client systems like this for everything from sculptures to stocks; crypto-rich types are now asking if it's applicable there, likewise.

Donating assets with a profit to a charitable remainder trust — your own personal 501(c)(3) — helps you to avoid capital gain taxes.

Hither's how such systems work: Say you bought Apple tree stock at $l and information technology's risen to $150. Selling those shares the regular way will trigger capital gains taxation on the $100 profit. But if y'all donate those shares to a charitable remainder trust — your own personal 501(c)(three) — the tax situation's much improve subsequently selling them.

"You can get distributions on an annual basis, as long every bit yous can demonstrate that x percent of the amount volition go to a qualified clemency at the term of the trust," Rubinstein says.

Information technology works the aforementioned way for any appreciated asset, similar a painting or handbag that ticks upwardly in value each twelvemonth: A family-controlled 501(c)(three) turns a luxury practiced into a do-gooding gesture.

A family-controlled 501(c)(3) can turn a luxury good, like a Birkin bag, into a do-gooding gesture. — A family-controlled 501(c)(3) tin can turn a luxury skilful, like a Birkin bag, into a practise-gooding gesture.

Wanna offset the price of a high-end family pet? In that location's a chance to exercise that if the canis familiaris is a security animal, per Rubinstein. And when you're spending six figures on a canis familiaris, that's a welcome abatement.

Greene owns and runs Svalinn, a Montana-based canis familiaris convenance and training company that'due south similar a canine Quantico. Well-trained graduates cost $125,000 each and do double duty as adorable family unit pets and protection officers, primed to detect danger before it happens.

"Quite a few people purchase dogs as a business expense, considering information technology's a justifiable security nugget," Greene told The Post. Like the Florida jeweler who keeps a Svalinn dog at her side in the shop and as she walks to her automobile late at night. Doctors are common clients, too, she says, keen to have protection from a surprise visit past a disgruntled quondam patient.

A security dog, such as the ones bred and trained by Kim Greene, can net you big savings during tax season. — A security canis familiaris, such as the ones bred and trained by Kim Greene, can net you large savings during tax flavor.

"Unlike a simple pet domestic dog, your personal protection dog goes with you lot everywhere you go. It'south your guardian angel," Greene said.

It's a reminder that there really are dissimilar rules — or even a different game to be played — when you're rich

"Some people might argue you lot're depriving the government of revenue, so there's an ethical obligation," lawyer Rubinstein said, "Simply high cyberspace worth individuals are taking advantage of legal loopholes. If you're having a concern coming together with clients, why should the deduction be capped at a bottle of mediocre wine from Sonoma? Why can't nosotros open commencement growths, and deduct them instead?"