America's Billionaires: Borrowing Their Way to Ever More Fabulous Fortunes

[Warpy]

1. Borrow lavish living expenses

pay back the loan when due, deduct the interest as a business expense. That's one of the worst abuses buried in a lot of tax returns of the 0.1%. It works really well if your lifestyle costs millions a year. The IRS would catch you if it was less than that.

They borrow for all sorts of things they could easily pay for, charging themselves interest and taking the tax deduction, interest representing increased income and the tax deduction knocking a little off the original price.

It builds up fast when you "lend" yourself money for pleasure palaces and auctions at Sotheby and Tate Ward to furnish them properly. The right hand pays the left hand interest and Uncle Sugar gives you money back on the deal.