5. The Stock Option

There are two kinds of stock options- Non-Qualified Stock Options (NSOs) and Incentive Stock Options (ISOs).  When you buy a Non-Qualified Stock Options and do not exercise it, then value of the option which gets appreciated over the time will not be taxed. For an Incentive Stock Options, in order to achieve favourable tax treatment, you will have to wait longer till the time you exercise it pay only the capital gain tax not the income tax.

6. Partnerships Shuffle

If you have a partner in business, then you both will also share the ownership of the business assets. And if you want to liquidate the ownership of the property without any tax liability, then use this tricky bit of business. Ask your partner to offer a loan in exchange of your ownership of the property. Hence the loan amount which you receive can be used to start a new subsidiary firm, yet a new partnership. So now the loan amount which you used for investing in a new subsidiary firm as share capital can further be used for investing in a finance company to earn a higher return. This higher value of return on investments which you earn can be used to pay back the interest on loan, and yet pay no capital gain tax.