9. Deferred-Compensation Plan

If you have money, try for this technique about avoiding taxes i.e. put a chunk of your salary in a deferred-compensation plan to enjoy the decades of tax-free growth. As you like to avoid immediate tax bills from salaries, then use this plan which allows the compensation, plus earnings, to grow tax-deferred, potentially for years together. The executives who have done it are Starbucks CEO Howard Schultz and Verizon Communications (VZ) CEO Ivan G. Seidenberg.

10. IRA Monte Carlo

According to the Tax advisers, it is sensible to convert traditional IRAs to Roth IRAs. As a high income tax payer to reduce your tax liability convert a traditional IRA to a Roth IRA. As you know IRA allows contributions to be deducted from taxes but incur taxes on distributions where else a Roth IRA’s contributions are taxed but the distributions are tax-free. For example when you have one traditional IRA with a value of $4 million and you split it up into four traditional IRAs, each worth $1 million. Later converts all four to Roth IRAs, if two of them incurred loss and two gains value. Then you will owe taxes on only the two contributions that went up in value, and nothing on the two that suffered loss. Hence this will cut your tax bill in half.